Adoption Tax Credit Calculator 2026 β OBBBA Refundable Credit
Calculate the 2026 adoption tax credit ($17,670 max). Includes OBBBA refundable $5,120 portion, MAGI phase-out, and 5-year carryforward projection for non-refundable amounts.
Foster care credit is available even with $0 expenses
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Fees, attorney, court costs, travel $
Phase-out: $265,070 β $305,070 $
Non-refundable portion limited to tax owed Examples:
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Total Adoption Credit
$0
Refundable Portion (OBBBA)
$0
Non-Refundable Portion
$0
5-Year Carryforward
Adoption Credit Calculation Breakdown
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How the Adoption Tax Credit Works in 2026
The adoption tax credit (Form 8839) helps offset the significant costs of adopting a child. Under the One Big Beautiful Budget Act (OBBBA), $5,120 of the credit is now refundable β a significant change that benefits lower-income adoptive families.
Key Rules by Adoption Type
Domestic: claim expenses in year paid (if after finalization) or year after (if before)
International: claim only in the year the adoption is finalized
Foster/Special Needs: credit = $17,670 regardless of actual expenses
Max credit per child: $17,670 (2026, inflation-adjusted)
Refundable portion (OBBBA): $5,120
Phase-out: MAGI $265,070 β $305,070 (reduction = credit Γ (MAGI β $265,070) / $40,000)
International: claim only in the year the adoption is finalized
Foster/Special Needs: credit = $17,670 regardless of actual expenses
Max credit per child: $17,670 (2026, inflation-adjusted)
Refundable portion (OBBBA): $5,120
Phase-out: MAGI $265,070 β $305,070 (reduction = credit Γ (MAGI β $265,070) / $40,000)
Example
Domestic adoption, $15,000 expenses, $200,000 MAGI:
Qualified credit = min($15,000, $17,670) = $15,000
Phase-out: MAGI $200,000 < $265,070 β no phase-out
Total credit = $15,000
Refundable = min($5,120, $15,000) = $5,120 (paid as refund)
Non-refundable = $9,880 (applied against tax liability; excess carries forward)
Qualified credit = min($15,000, $17,670) = $15,000
Phase-out: MAGI $200,000 < $265,070 β no phase-out
Total credit = $15,000
Refundable = min($5,120, $15,000) = $5,120 (paid as refund)
Non-refundable = $9,880 (applied against tax liability; excess carries forward)
Extended
Multi-Year Carryforward Projection
See how your non-refundable adoption credit carries forward over 5 years based on projected tax liability
5-Year Carryforward Projection
Enter your projected annual tax liability for each of the next 5 years to see how the non-refundable credit is applied.
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Frequently Asked Questions
What is the adoption tax credit maximum for 2026?
The maximum adoption tax credit for 2026 is $17,670 per eligible child. This amount is indexed for inflation each year. Under OBBBA, $5,120 of the credit is now refundable β meaning even if you owe no federal tax, you can receive up to $5,120 as a refund. The non-refundable portion can be carried forward for up to 5 years.
What adoption expenses qualify for the tax credit?
Qualified adoption expenses include: reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including meals and lodging) while away from home, and other expenses directly related to the legal adoption of an eligible child. Expenses for adopting a spouse's child do not qualify. For foster care adoptions, the full credit is available even without incurring any expenses.
When can I claim adoption expenses β before or after finalization?
For domestic adoptions: expenses paid in the year before finalization are claimed in the following year; expenses paid in the year of or after finalization are claimed in that year. For international adoptions: expenses can only be claimed in the year the adoption is finalized β not before. Foster care adoptions follow domestic rules since they occur within the US.
What is the MAGI phase-out for the adoption credit in 2026?
The adoption credit begins phasing out when your Modified AGI (MAGI) reaches $265,070 in 2026. The credit is fully phased out at $305,070. For every dollar of MAGI above $265,070, the credit is reduced proportionally. The phase-out calculation is: reduction = credit Γ (MAGI β $265,070) / $40,000.
How does the 5-year carryforward work for the non-refundable adoption credit?
If the non-refundable portion of your adoption credit exceeds your tax liability in the year you first claim it, you can carry forward the unused amount for up to 5 subsequent tax years. Each year, you apply the carryforward against your tax liability until it is used up or the 5-year period expires. The refundable portion ($5,120) is paid out regardless of tax liability and cannot be carried forward.