What is the adoption tax credit?

What is the adoption tax credit?

The adoption tax credit is a federal tax benefit that helps offset the costs of adopting a child. It can cover expenses like adoption fees, court costs, and attorney fees.

How much is the adoption tax credit for 2023?

For 2023, the adoption tax credit is up to $15,950 per child. This amount may change annually, so it's good to check for updates.

Are there any income limits to qualify for the adoption tax credit?

Yes, there are income limits. For 2023, the credit begins to phase out for taxpayers with modified adjusted gross incomes over $239,230.

Can I claim the adoption tax credit if I adopted a child from another country?

Yes, you can claim the adoption tax credit for international adoptions as long as you meet the eligibility requirements.

What documents do I need to provide to claim the credit?

You'll need to provide documentation such as the adoption decree, receipts for qualifying expenses, and Form 8839 when filing your taxes.