The IRS has released Revenue Procedure 2025-32, announcing updates to federal tax brackets, deductions, and credits for 2026, including an important adjustment for adoptive families.
For adoptions finalized in 2026, the maximum Federal Adoption Tax Credit will increase to $17,670 per child, up from $17,280 for 2025. This annual inflation adjustment helps families offset adoption-related expenses such as legal fees, court costs, travel, and agency expenses.
The credit will begin to phase out when an adoptive family’s Modified Adjusted Gross Income (MAGI) exceeds $265,180 and will phase out completely at $305,080 for 2026.
Importantly, the refundable portion of the credit, which means the amount that can be received even if no taxes are owed, will also increase slightly to $5,120, up from $5,000 for adoptions finalized in 2025.
The updated 2026 tax credit is a meaningful boost for adoptive families planning to finalize next year. If you are in the process of adopting or considering adoption with any connection to Florida, our team is here to help.
For more information contact Tate Healey Webster at floridaadoptionattorney.com or (813) 258-3355.