The Federal adoption tax credit has been enhanced for adoptive parents and prospective parents. The adoption tax credit has been increased to $13,170.00. It is now fully refundable! This means even if you did not owe federal taxes, you will get a refund.
You can qualify for the adoption tax credit whether you do a domestic or foreign adoption and whether or not the child has special needs.
The expenses that qualify include legal, medical, adoption fees, Court costs, and travel expenses. The IRS outlines what qualifies at their website. You must have documentation for your expenses with receipts. Some parents who are in higher income tax brackets may not be eligible.
Disclaimer. I am not a tax preparer. This information is presented for you to share with your tax preparer.