The adoption tax credit offsets qualified adoption expenses, but phases out over a specific MAGI range rather than applying at every income level.
How it works
Qualified adoption expenses are capped at the maximum credit amount. Below the phase-out floor, the full amount is allowed; within the phase-out range, the credit reduces proportionally with MAGI; above the ceiling, no credit is allowed.
What this does not include
A portion of the credit is refundable, meaning it can be received even if it exceeds tax liability — this calculator computes the total allowed credit but doesn’t separately break out the refundable versus non-refundable portions.
How to use this calculator
- Enter qualified adoption expenses and MAGI.
Frequently asked questions
What counts as a qualified adoption expense?
Reasonable and necessary adoption fees, court costs, attorney fees, and travel expenses directly related to the legal adoption of an eligible child.
Can the credit be carried forward if not fully used?
Yes — any credit amount exceeding tax liability in the year claimed can generally be carried forward for up to five years.
Does this credit apply to stepchild adoptions?
No — adopting a spouse’s child generally does not qualify for the adoption tax credit under IRS rules.
