Adoption Credit Now Partly Refundable: CPA Guide | HelloBooks Part of the adoption credit is refundable from the 2025 return. The 2025 and 2026 maximums, the carryforward catch, and tribal special-needs rules.
Families with little tax liability used to carry most of the adoption credit forward for years. Part of it is now refundable, which changes the value of the credit for lower-income adoptive parents.
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Refundable for the 2025 return
$5,000 per child
Applies: Tax year 2025 onwardFrom IRS.gov · checked October 10, 2026
For the 2025 return, the maximum credit is $17,280 per eligible child, and up to $5,000 per qualifying child is refundable. For 2026 the maximum rises to $17,670, with up to $5,120 refundable.
The rest of the credit stays nonrefundable and can be carried forward. The IRS warns that any nonrefundable amount carried forward cannot be used to compute a refundable portion in a later year.
Indian tribal governments can now determine whether a child has special needs for credit purposes. An eligible US child with special needs can qualify for the credit even without qualified adoption expenses.
The plain-English summary for business owners
By client type · families with children
Families · 2025 and 2026
Families · dependent care
General information for tax professionals, not advice on a specific return. Figures are from IRS.gov on the date shown; check the current IRS instructions before filing.
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