14 Jan Are there still tax credits for adopting a child?

Q. We have had trouble getting pregnant and we are thinking about adopting. Are there still tax credits for that? Does it matter if it’s a child from another country?
— Hopeful

A. Adopting a child is a wonderful idea.

But it can be expensive.

The Adoption Tax Credit still remains in effect for 2025, said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.

For 2025, it is a dollar-for dollar tax reduction up to $17,280, he said, while for 2024, it is $16,810.

As is always the case, there are eligibility requirements, Karu said.

“If you are married, you must file a joint return,” he said. “Your modified adjusted gross income must be below $292,150 to get anything with a phase-out starting at $252,151.”

The IRS website offers a way to determine your eligibility. Go to this link and at the bottom of the section marked “Eligibility” is a link to determine whether you are eligible.

For foreign adoptions, you only can claim the credit once the adoption has been finalized, Karu said.

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This story was originally published in January 2025.

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