The IRS has provided an overview of the improvements made to the Adoption Tax Credit by the One Big Beautiful Bill Act. The credit can be claimed for eligible expenses related to international, domestic, private and public foster care adoptions. Qualified expenses include adoption fees, legal costs and travel expenses. In 2025, the credit is for up to $17,280 of qualified expenses, with phaseouts for higher-income parents. New in 2025, up to $5,000 of the credit is refundable. You generally can carry forward any nonrefundable amount for up to five years. In 2026, the maximum credit will increase to $17,670, and the refundable portion will increase to $5,120. For details: https://bit.ly/4qk9Ts6
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