Adoption Tax Credits and Deductions in Florida
You can significantly offset the cost of private infant adoption by leveraging powerful federal tax benefits designed to reimburse your family-building expenses.
By strategically tracking your expenses with a licensed agency, you can prepare for tax season and create a manageable, structured plan.
We are here to explain the adoption tax credit for 2026, and show you how partnering with American Adoptions of Florida ensures your expenses are documented for the IRS.
What Is the Adoption Tax Credit in Florida?
The federal adoption tax credit is a tax benefit that provides a dollar-for-dollar reduction in your federal income tax liability to help offset qualified expenses like agency fees, court costs, and travel.
This federal policy was created to encourage and support families who choose to adopt by providing direct financial relief. It is designed to reimburse adoptive parents for the necessary fees required to legally bring a child into their home, making the overall lifetime cost of adoption much more affordable.
Because Florida does not have a personal state income tax, there is no specific state adoption tax credit available to residents. However, Florida families are fully eligible to claim the federal adoption tax credit.
How Much Is the Adoption Tax Credit for Florida Families?
For families finalizing an adoption in 2025, the maximum federal adoption tax credit is $17,280 per child.
This maximum amount is adjusted annually by the IRS for inflation. If your qualified adoption expenses equal or exceed this amount, you can claim the full amount on your federal tax return to directly offset your tax liability for that year.
Is the Adoption Tax Credit Refundable?
Yes. Recent legislative updates have completely changed how this credit works, making it more powerful than ever.
Previously, the credit was strictly non-refundable—meaning it could reduce your tax bill to zero, but you wouldn't get a check for any leftover amount. Now, you can get a partial refund, while carrying the remaining balance forward to reduce your tax liability for up to five subsequent years.
Who Qualifies for the Adoption Tax Credit in Florida?
To determine who qualifies for the adoption tax credit, the IRS looks at your Modified Adjusted Gross Income (MAGI) and the type of adoption you are pursuing.
Almost all private domestic infant adoptions qualify. For 2025, families with a MAGI below $259,190 can claim the full federal adoption tax credit. If your income falls between $259,191 and $299,189, the credit gradually phases out. Families earning above $299,190 are not eligible.
What Adoption Expenses Are Considered ‘Qualified’?
To claim the federal adoption tax credit, your expenses must be considered "reasonable and necessary" for the principal purpose of legally adopting a child.
Qualified expenses typically include:
- Agency Fees: The professional service fees paid to American Adoptions of Florida.
- Legal Fees: Attorney and court costs required for finalization.
- Home Study Costs: The fees paid to your licensed social worker.
- Travel Expenses: Airfare, gas, lodging, and meals required for adoption-related travel.
Adoption Tax Credit vs. Tax Deduction: What’s the Difference?
Many families use financial terms interchangeably, asking their CPA if they qualify for a tax deduction for adoption. It is vital to know the difference, because a credit is far more valuable.
A tax deduction for adoption would only lower your taxable income (the amount of your income subject to taxes). However, the IRS does not offer a tax deduction for adoption; they offer a credit. A credit reduces your actual tax liability dollar-for-dollar.
For example, if your final tax bill is $10,000, a $10,000 federal adoption tax credit wipes out that amount completely, meaning you wouldn’t owe taxes.
If it were merely a tax deduction for adoption, it would only save you a fraction of that amount based on your tax bracket. Simply put, there is no federal tax deduction for adoption because the government gave adoptive families something better.
How the Federal Adoption Tax Credit Fits Into the Cost of Adoption in Florida
When building your adoption budget, it is important to understand the timing of this financial relief. In a domestic private adoption, the credit is typically claimed the year after you pay the expenses or the year the adoption is finalized.
Because it is a reimbursement mechanism rather than an upfront grant, many families use short-term savings or specialized adoption loans to cover the initial agency and legal fees, knowing they will use the federal adoption tax credit to replenish their savings or pay off the loan the following spring.
Why Working With a Florida-Licensed Adoption Agency Matters
To successfully claim the federal adoption tax credit without triggering an audit, you need itemized documentation of your expenses.
When you work with a fully licensed agency like American Adoptions of Florida, we provide transparent, detailed invoicing. Qualified expenses (like agency and legal fees) can be separated from unqualified ones, making tax season stress-free for you and your accountant.
Next Steps: Getting Personalized Guidance
You don't have to be a tax expert to afford your family-building journey—you just need the right team behind you.
Contact American Adoptions of Florida today to learn more about our transparent fee structures and how you can prepare for your adoption journey.
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