Jan 21, 2026
On the 22nd of October 2024, the IRS issued Rev Proc 2024-40 wherein it announced the Adoption Tax Credit for adoptions finalized in 2025.
The maximum credit will be $17,280, an increase from the 2024 limit of $16,810. The maximum credit will begin to be phased out when the adoptive parents’ Modified Adjusted Gross Income (MAGI) for 2025 is greater than $259,190, and they will not be entitled to any credit if their MAGI is equal to or greater than $299,190 for 2025.
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