According to the US Department of Health & Human Services, adoptive parents may spend more than $20,000 to adopt a child. However, they may qualify for a tax credit of up to $14,080 per eligible child in 2019. The tax credits include both federal adoption tax credit for qualified adoption expenses and an exclusion from income for employer-provided adoption benefits.

Qualified adoption expenses are adoption fees, attorney fees, court fees, travel expenses and re-adoption expenses relating to the adoption of foreign child.

An eligible child is any child under age 18, or any disabled individual physically or mentally unable to take care of himself or herself.

The credit is reduced if your modified adjusted gross income (MAGI) falls between $211,161 and $251,159, and is eliminated if your MAGI is more than $251,159. The credit is nonrefundable but can be carry forward to next year. 

Learn more about adoption tax credit at IRS Adoption Tax Credit

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