Can I Deduct Adoption Expenses?

Adopting a child is a meaningful and often expensive process, and the tax code provides a significant credit to help offset those costs. The adoption tax credit allows you to claim a credit for qualified adoption expenses such as court costs, attorney fees, agency fees, and travel related to the adoption. For 2024, the maximum credit is over $15,000 per eligible child. Unlike a deduction, the credit directly reduces your tax bill dollar for dollar. The credit begins to phase out at higher income levels, and for special needs adoptions you may be able to claim the maximum credit even if your actual expenses were lower.