7 Facts to Know about the Adoption Tax Credit by Joanie Stein, CPA

Posted on January 21, 2023 by Joanie Stein

Growing one’s family through adoption provides prospective parents with an opportunity to experience the joys of raising children and providing them with loving and permanent homes. While the process can be costly, the federal government offers a tax credit to help families offset some of those expenses and reduce their federal tax liabilities.

Families may claim as a tax credit on their 2022 tax returns up to $14,890 per child in qualifying adoption expenses. Therefore, the amount you can claim depends on the number of children you adopt, for which there is no limit. If you adopted two children in 2022, you may qualify for a $29,780 credit ($14,890 X 2) that can provide a dollar-for-dollar reduction in the amount of federal tax liability you owe for the year. However, like most provisions of the tax code, the federal adoption tax credit can be quite complex. Here are seven points to keep in mind.

About the Author: Joanie B. Stein, CPA, is an associate director of Tax Services with Berkowitz Pollack Brant Advisors + CPAs, where she works with individuals and closely held businesses to implement sound strategies intended to preserve wealth and improve tax efficiency. She can be reached at the CPA firm’s Miami office at (305) 379-7000 or at