Posted by Fred Lake

Adoption Tax Credits - How much is It?

Adoption Tax Credits - How much is It?

Tax payers who think about adopting a child will have to pay the taxes but the good news is that they can qualify for the adoption tax credit. People who adopt a child easily qualify for the adoption tax credits which were related to the expenses they made all linked to the children they adopted. 


The amount of tax credit which one can get in return for adopting a child is linked to the expenses that the individual has made all related to the costs of the adopted child. Apart from this, if you have adopted a child with special needs you can claim the full adoption tax credit and its full amount whether the expenses that you made from your pocket are lesser than the adoption credit tax amount. 


Eligibility requirements for adoption tax credit

It is not everybody who can just easily claim for the adoption tax credit but there are some requirements in order to be eligible for the adoption tax credit. In order to claim the adoption tax credit, you must adopt an eligible baby or child as well as you have to pay the adoption expense from your own pocket and then later on you can claim the expenses. 

Children who are eligible for the adoption tax credit must be of seventeen years or younger than that or else a child who has the US residency or citizenship and is incapable of taking care of himself or else herself.

The expenses of adoption include all kinds of payments made by the individual related to the child after his/her adoption. The expenses must however be necessary for the adoption and not useless or else they will not be reimbursed. Some examples of the expenses include the adoption expenses, costs of the courts, travelling expenses and the legal fees.

Those tax payers who have adopted special children who need special attention or those who are mentally ill can claim the full amount of the adoption credit.

The list of the eligible expenses must be linked to the adoption of the child only such as the court fees and legal fees. 

When should you claim the adoption credit?

The time of claiming the adoption credit all depends upon the time when you have adopted the child finally or else if the child that you have adopted is a resident of the united states of America. 

If the child you have adopted has nationality of any foreign country, then you can claim for the adoption tax credit in the year when you have finalized the adoption. After the adoption is final, any expense that you make for the adopted child, you can claim the adoption tax credit for it.

For instance, if the child you have adopted does not have any social security number, then it is necessary that you should be applying for the adoption tax ID number so that you can claim the child you have adopted as an independent. For more information, you can check out or contact the IRS for the complete information regarding adoption and the tax credits you can claim. 


How to carry forward the adoption tax credit

The adoption that you make in the year 2012 or after that, comes as an excess in the federal tax in the following year. Apart from this, the adoption credits which are in an excess can be carried forward till 5 more years on the basis of first come first serve. 

Wrapping up

you have the option of availing tax savings through the flexible spending account and child and adoption tax credit. This can save up a lot of money for you as well as make your and your kids future quite secure.


Being a parent is definitely a hard job as well as an added expense to your income. When children come, they not only bring blessings but a lot of expense on their hands as well. However, your children can also be a great way for you to exempt you from paying a lot of taxes. 

So, read out this article properly to find out more about the adoption tax credits and whether you qualify for them or not. 

Fred Lake
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