For hopeful adoptive parents, every form of support matters—and the federal Adoption Tax Credit has long offered meaningful financial relief. Now, an important update is on the horizon: starting with tax returns filed in 2025, a portion of the credit becomes refundable.
This change allows more families to benefit from the tax credit, regardless of income level, and provides much-needed support during or just after adoption.
What Is the Federal Adoption Tax Credit?
The Adoption Tax Credit is a federal tax benefit that helps adoptive parents recover qualified expenses related to adoption. These may include:
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Attorney fees
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Court costs
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Adoption agency fees
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Travel and lodging expenses
For adoptions finalized in 2024, the credit is worth up to $16,810 per child.
Previously, the credit was non-refundable, meaning it only reduced your tax bill. If your tax liability was low, you couldn’t access the full benefit right away—you had to carry it forward to future tax years.
What’s New for 2025?
Beginning with 2025 tax filings, the credit becomes partially refundable—up to $5,000. This means that even if you owe little or no federal income tax, you may receive up to $5,000 as a refund, rather than waiting to use the credit over time.
This is a big deal for families whose income may not be high enough to fully benefit from a non-refundable credit. It makes the Adoption Tax Credit more accessible, more equitable, and more effective.
Who Qualifies for the Refundable Adoption Tax Credit?
The credit is available for most types of adoption, including:
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Private domestic adoptions
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Foster care adoptions
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International adoptions
Families using an agency or adopting through independent means may qualify.
Should I Talk to a Tax Professional?
Yes. The IRS has not yet updated its official website with the new refundable rules, so it’s important to consult with a qualified tax advisor. They can help you track qualified expenses, calculate the credit accurately, and file appropriately when the time comes.
How We Help at Tate Healey Webster
As the largest law firm in Florida focused solely on adoption and surrogacy law, our team of board certified Florida adoption attorneys has guided thousands of families through the adoption process. We understand just how much this credit can help—and how confusing tax planning can feel in the middle of such a personal journey.
If you’re pursuing adoption in Florida, we’re here to support you.
Offices throughout Florida:
Tampa | Orlando | Naples | Merritt Island | Jacksonville | Boca RatonSchedule your intake here – https://