National Adoption Day: Understanding the Adoption Credit

Adopting a child is a beautiful decision — and it can also come with significant expenses. The Adoption Tax Credit helps ease that financial burden by covering certain qualified costs associated with the adoption process.

Who Qualifies?

The credit applies to families who adopt a child under age 18 or a child with special needs. It can be used for both domestic and international adoptions, though timing rules vary depending on when the expenses are paid and finalized.

What Expenses Qualify?

Eligible expenses include adoption fees, court costs, travel, and other necessary expenses directly related to the legal adoption of an eligible child.

How Much Is the Credit Worth?

For 2025, the maximum credit is up to $17,280 per eligible child. While it’s nonrefundable, unused portions can typically carry forward for up to five years.

Documents You’ll Need

Keep copies of your adoption decree, payment receipts, agency statements, and identifying documents for the child.

How JBH Financial Helps

At JBH Financial, we help families verify eligibility, organize documents, and prepare accurate returns so you receive every credit you deserve.

If you’ve recently adopted or are preparing to, download our Adoption Credit Checklist or log into your Client Portal to access it today.

-JBH Financial Services