If you want to expand your family by adopting a child, you’ll be pleased to know that a federal tax credit is available to help adoptive parents offset some of the costs. In 2025, the credit is for up to $17,280 of qualified expenses, with phaseouts for higher-income parents. New in 2025, up to $5,000 of the credit is refundable. You generally can carry forward any nonrefundable amount for up to five years. In 2026, the maximum credit will increase to $17,670, and the refundable portion will increase to $5,120. Qualified expenses include adoption fees, legal costs and travel expenses. In addition, there may be state tax benefits. Questions? Contact us. © 2025