If you’re considering adopting a child, you should know there may be financial help available in the form of an adoption tax credit. For 2023, the credit for an adoption of a special needs child is $15,950. The maximum credit allowed for other adoptions in 2023 will be the amount of qualified adoption expenses up to $15,950. (Both amounts are $14,890 in 2022.) For 2023, the available adoption credit will begin to phase out for taxpayers with modified adjusted gross incomes (MAGIs) of $239,230 and will be unavailable once MAGI reaches $279,230. For 2022, the phaseout range is $223,410 to $263,410. Contact us with any questions.
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