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Adoption Credit and Adoption Assistance Programs

Benefit overview

If you adopt a child, you may qualify for federal tax benefits. Tax benefits for adoption include both a tax credit for qualified adoption expenses paid to adopt an eligible child and an exclusion from income for employer-provided adoption assistance. The credit is nonrefundable, which means it’s limited to your tax liability for the year. However, any credit in excess of your tax liability may be carried forward for up to five years.

How this benefit helps

This benefit helps military families by helping to cover the costs associated with expanding their families.

Image of Savings Piggy Bank

Save money with federal tax benefits for qualifying adoption expenses.

The federal tax benefits include both a tax credit and an exclusion of employer-provided adoption assistance from your taxable income. Both can save you money when you do your taxes.

How to access this benefit

To claim the adoption credit or exclusion, complete Form 8839, Qualified Adoption Expenses and attach the form to your Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, U.S. Tax Return for Seniors or Form 1040-NR, U.S. Nonresident Alien Income Tax Return. Instructions for Form 8839 contain additional information about the adoption credit and exclusion.

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