Adoption Tax Credit Update

The IRS recently posted new language regarding eligibility for adoption assistance or subsidy agreements. The IRS clarified the documentation required for claiming the Federal Adoption Tax Credit for special needs adoptions. The official language indicates that Adoption Assistance or Subsidy Agreements are acceptable documentation of special needs. Visit the IRS website to learn more.

According to Voice for Adoption, the Federal Adoption Tax Credit is now refundable. The Patient Protection and Affordable Care Act (Public Law 111-148) made significant, short term, changes to the adoption tax credit. The credit per-child is now $13,170 for adoptions finalized in 2010. It also made the tax credit refundable. This means that families can claim a refund even if they owe no taxes. Families who adopt a child with special needs from foster care can claim the credit without needing to incur or document expenses. Visit VOA’s website for further information.

1 Reply to "Adoption Tax Credit Update"

  • joe kroll
    July 20, 2011 (1:12 pm)

    Because in some states counties provide adoption assistance agreements, the IRS is also accepting county AAP agreements. For more information on the adoption tax credit go to .

    Joe Kroll
    Executive Director
    North American Council on Adoptable Children