Creating a Family: Talk about Adoption, Foster & Kinship Care The 2025 Adoption Tax Credit
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Did you finalize an adoption in 2025 or within the last several years? Are you eligible to claim the Adoption Tax Credit? Listen to this conversation about the 2025 Adoption Tax Credit. Our guests are Becky Wilmoth, an Enrolled Agent and Adoption Tax Credit Specialist with Bill’s Tax Service, and Josh Kroll, the Adoption Subsidy Resource Center coordinator at Families Rising.
In this episode, we discuss:
- What is the Adoption Tax Credit for adoption being claimed on 2025 federal taxes?
- What is different about this year’s Adoption Tax Credit?
- How would you claim the Adoption Tax Credit if you get a tax refund every year?
- What types of adoptions are included or excluded in the Adoption Tax Credit?
- Are kinship adoptions covered? Are kinship guardianship arrangements/expenses covered?
- What if the relative child was never involved with the foster care system?
- Can you claim the Adoption Tax Credit for each adoption you complete, even if you completed them in the same year?
- What is a Qualified Adoption Expense for purposes of the Adoption Tax Credit 2025?
- When can you claim the Adoption Tax Credit for:
- Domestic Private/Infant Adoption
- International Adoption
- Re-adoption in the US for International Adoption
- Foster Care Adoption
- Kinship Adoption
- For purposes of filing the Adoption Tax Credit, what qualifies as a Special Needs Adoption?
- How does the Adoption Tax Credit differ for adoptions from foster care?
- What does the IRS accept as proof of “special needs” in foster adoptions?
- What is a $0 subsidy agreement?
- Can you reclaim your expenses for an adoption that did not result in a placement (that is, a failed adoption)? How?
- What income level (Modified Adjusted Gross Income) is excluded from claiming the Adoption Tax Credit in 2025?
- How long can the credit be carried over?
- What if you didn’t claim the Adoption Tax Credit when eligible?
- Will the Adoption Tax Credit offset self-employment tax?
- How does the Secure Act impact us if we are claiming the Adoption Tax Credit for 2025 taxes?
- What should you do if the child’s Social Security Number is unavailable when you file?
- How does the Adoption Tax Credit work in conjunction with employee adoption benefits?
- If you adopt, can you still claim the Child Tax Credit?
- Do you need to send any documentation for the Adoption Tax Credit to the IRS when you file your taxes?
- What type of documentation should you keep in your records? For how long?
- How to advocate for refundability? https://adoptiontaxcredit.org
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