Adopting in Florida? The Florida Adoption lawyers at Gulf Coast Adoptions explain how to make the most of your adoption tax credit.
Understanding the Adoption Tax Credit
The adoption tax credit is a federal credit that can lower tax liability for people in the adoption process. Allowable expenses are directly deducted from federal tax.
Adoption Tax Credit – Chart
| Year | Maximum Amount |
| 2025 | $17,280 |
| 2024 | $16,810 |
| 2023 | $15,950 |
How the Adoption Tax Credit Works
The adoption tax credit begins with the incurring of qualifying adoption expenses. These expenses must be documented with receipts. The parent uses Form 8839 to list and claim expenses as a tax deduction when doing taxes.
Qualifying Adoption Expenses
- Adoption agency fees
- Court costs and fees
- Travel expenses (meals and lodging)
- Home study fees, even if the child has not been identified
- Attorney fees
- Other direct expenses
What things do not count for the adoption tax credit?
- Birth mother expenses
- Surrogacy
- Stepparent adoption
- Double credit, if expenses qualify for a different credit
- Costs reimbursed by your employer
- Expenses paid by government adoption programs
Credit vs. Refund: Important Distinctions
The adoption tax credit is non-refundable. That means it can reduce your tax liability to zero, but it won’t give you money back. For this reason, maximizing your tax credit may require carrying amounts forward to future years.
How to maximize benefits with tax planning
You may want to adjust your withholdings if you anticipate claiming the deduction. This can give you more income during the tax year.
Carrying forward unused credit amounts
If you do not have the maximum amount of expenses in the first year, you may carry forward the remaining amounts for up to five years. If you are ineligible to claim the adoption tax credit because your income is too high, you may not claim the credit in later years.
Income Limitations and Phase-Out Thresholds
There are income limits for the adoption tax credit. If you make too much, you won’t be able to claim it. For 2025, if you make more than $259,190, you can’t claim the entire credit. If you make more than $299,190, you can’t claim the credit at all. ($252,150-$292,150 for 2024). The income limit for adoption tax credit eligibility is based on adjusted gross income.
State of Florida Adoption Tax Credit
Florida has no state income tax. There are some state-specific Florida adoption expenses, like a home study in most cases, court fees, a fee to search the Putative Father Registry, and other expenses. These expenses likely qualify, but always consult with a professional about your circumstances.
Adoption Tax Credit vs. Employer Adoption Benefits
The adoption tax credit is not the same as employer adoption assistance. An employer assistance program may allow you to exclude employer assistance from your taxable income up to a maximum amount.
You may use the exclusion and claim the credit, just not for the same expenses. However, if you adopt a special needs or hard-to-place child, the exclusion may apply even without employer assistance.
Special Situations and Circumstances
Domestic vs. international adoption considerations
If the adoption is domestic, you may take the deduction in the tax year after the expenses are incurred. You may also take the deduction after the adoption is final. When the adoption is international, the adoption must be finalized before taking the tax credit.
Foster care adoption eligibility
If you adopt a child who is considered special needs through foster care, you may claim full credit. It is not necessary to incur expenses.
For a special needs or hard-to-place child, you may claim expenses after the adoption is final.
Failed or disrupted adoption
If the adoption is failed or unsuccessful, you may still claim the adoption tax credit. Amounts claimed are deducted from what you can claim if you pursue adoption again.
Married couples
The adoption tax credit is per child. If you adopt more than one child, you may claim the credit for each child. The credit is not per parent – you may claim the total amount once.
Single parents
The adoption tax credit is the same for single vs. married parents.
Unmarried domestic partners
If you are unmarried and adopting your domestic partner’s child, you may qualify to claim the credit. However, there are other considerations because the adoption process is different in Florida for a domestic partner vs. a spouse. Consult an attorney to discuss the various scenarios.
Ways to Maximize Your Adoption Tax Credit
- Save the documentation needed to claim the credit
- Get proper documentation for a special needs child
- Carry forward amounts to future years, if applicable
- Minimize your adjusted gross income by contributing to retirement and HSA accounts
- Take advantage of employer reimbursements
Talk to a Lawyer
Call or message Gulf Coast Adoptions to talk about your situation.