Adoption Credit and Adoption Assistance Programs

If you adopt a child, you may qualify for federal tax benefits. Tax benefits for adoption include:

• A tax credit for qualified adoption expenses paid to adopt an eligible child
• The ability to exclude certain employer-provided adoption assistance from your taxable income

The credit is nonrefundable, which means it’s limited to your tax liability for the year. If the credit is more than your tax liability, however, you can carry it forward for up to five years.

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

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.

• Topic No. 607 Adoption Credit and Adoption Assistance Programs
• Form 8839, Qualified Adoption Expenses
• Am I Eligible to Claim a Credit for Adopting a Child or to Exclude Employer-Provided Adoption Benefits From My Employer?