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The adoption tax credit is a nonrefundable credit, which means it only offsets your federal income tax liability. Your income tax liability is the amount you are responsible for in federal income taxes for the year.
Adoption credit. Use Form 8839, Part II, to figure the adoption credit you can take on Schedule 3 (Form 1040), line 6c. You may be able to take this credit in 2023 if any of the following statements are true.
For example, if you claimed a $3,000 credit in connection with a domestic adoption in 2022 and paid an additional $15,950 of qualified adoption expenses in 2023 (when the adoption became final), the maximum credit you can claim in 2023 is $12,950 ($15,950 dollar limit less $3,000 of qualified adoption expenses claimed
Yes if it is a US adoption and you had qualified adoption expenses. It is treated as a non-finalized adoption, and you must wait one year after you incur the expenses. So, if you had expenses for an adoption in 2023 but the adoption has failed, you claim them with your 2024 taxes, typically filed in early 2025.
The credit is nonrefundable, which means its limited to your tax liability for the year. However, any credit in excess of your tax liability may be carried forward for up to five years.
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To claim the adoption tax credit in TurboTax Open or continue your return if it isnt already open. Search for adoption credit and select the Jump to link. On the Did you pay any adoption expenses in 2023 or earlier? or the Credit for Adoption Expenses screen, read the information and, if you qualify, answer Yes.
Timing of Claiming the Credit: The Adoption Tax Credit can be claimed in the year that qualified adoption expenses are paid, even if the adoption is not finalized in that tax year. Planning the timing of your adoption expenses and tax filings is essential for maximizing the credit.

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