2022 Adoption Credit
For 2022, the Adoption Credit figures are $14,890 (Maximum credit), $223,410 (Phase-out threshold) and $263,410 (Fully phased out).
Effective 2022-01-01Source: Rev. Proc. 2021-45 (IRS)Verified 2026-09-02
Compared with 2021
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Maximum credit | $14,440 | $14,890 | +$450 (+3.1%) |
| Phase-out threshold | $216,660 | $223,410 | +$6,750 (+3.1%) |
| Fully phased out | $256,660 | $263,410 | +$6,750 (+2.6%) |
Who it applies to
Taxpayers who paid qualified adoption expenses or adopted a child with special needs in a taxable year beginning in 2022
What changed this year, and why
For taxable years beginning in 2022, the maximum adoption credit is $14,890 per child. For the adoption of a child with special needs, the full credit of $14,890 is allowed. For other adoptions, the credit equals qualified adoption expenses up to $14,890. The credit begins to phase out for taxpayers with modified adjusted gross income above $223,410 and is fully phased out at modified adjusted gross income of $263,410 or more.
Common questions
- At what income levels does the Adoption Credit phase out?
- The credit begins to phase out for taxpayers with modified adjusted gross income above $223,410 and is fully phased out at $263,410 or more.
- Is the credit the same for adopting a child with special needs?
- Yes. For the adoption of a child with special needs, the full credit of $14,890 is allowed regardless of actual expenses. For other adoptions, the credit is limited to the qualified adoption expenses actually paid, up to $14,890.
The credit shrinks as income rises
For 2022 the adoption credit begins to shrink once a taxpayer's modified adjusted gross income exceeds $223,410. Above that threshold the credit is reduced proportionally until it reaches zero at $263,410 of modified adjusted gross income, where it is completely phased out. Taxpayers whose MAGI is $223,410 or less may claim the full credit of up to $14,890 per eligible child, while those whose MAGI reaches $263,410 or more cannot claim any adoption credit at all. The phase-out applies across a range of income between those two thresholds and is calculated on Form 8839 using the income-limit table shown in the instructions.
This amount begins to phase out if you have modified adjusted gross income in excess of $223,410 and is completely phased out for modified adjusted gross income of $263,410 or more.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
The credit and the employer exclusion cannot cover the same expense
Taxpayers who receive employer-provided adoption benefits may also claim the adoption credit, but they cannot use both benefits for the same qualified adoption expenses. Each dollar of expenses can be used either for the credit or for the exclusion, but not both. For example, if an employer pays or reimburses adoption expenses, the taxpayer can exclude those amounts from income but cannot also claim a credit for those same expenses. This rule prevents double benefits for a single expenditure. However, if the total qualified adoption expenses exceed the employer-provided benefits, the taxpayer may be able to claim a credit for the remaining expenses, subject to the overall maximum credit limit of $14,890 per eligible child for 2022.
But, you can't claim both a credit and exclusion for the same expenses.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
Unused credit carries forward
If the adoption credit calculated on Form 8839 exceeds the taxpayer's tax liability for the year, the unused portion may be carried forward to future tax years. Specifically, if line 15 of Form 8839 is smaller than line 14, the taxpayer has an unused credit that can be carried forward for up to the next 5 years or until the credit is fully used, whichever comes first. The Adoption Credit Carryforward Worksheet provided in the instructions helps determine the exact amount to carry forward. Taxpayers must keep this worksheet because it will be needed to figure the credit in subsequent years. This carryforward provision ensures that taxpayers who cannot use the full credit in one year due to tax liability limitations do not lose the benefit entirely.
If Form 8839, line 15, is smaller than line 14, you may have an unused credit to carry forward to the next 5 years or until used, whichever comes first.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
MAGI for the credit adds back income excluded because you live abroad or in a territory
MAGI (Modified Adjusted Gross Income) is the starting point for determining whether your 2022 Adoption Credit phases out, but it is not simply the AGI shown on your tax return. You must add back certain amounts that were excluded from your income. Specifically, take the AGI from Form 1040, 1040-SR, or 1040-NR, line 11, and increase it by any exclusion of income from Puerto Rico, amounts from Form 2555 (lines 45 and 50), and the amount from Form 4563, line 15. These add-backs capture income that was excluded because you live abroad or in a U.S. territory. This modified figure is then compared against the phase-out thresholds to determine whether your credit is reduced or eliminated entirely.
Enter on line 7 the amount from Form 1040, 1040-SR, or 1040-NR, line 11, increased by the total of any: • Exclusion of income from Puerto Rico; • Amounts from Form 2555, lines 45 and 50; and • Amount from Form 4563, line 15.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
Expenses paid before a domestic adoption is final wait a year
For a domestic adoption - where the child is a U.S. citizen or resident - the timing of when you can claim the credit depends on when you paid the expenses relative to when the adoption became final. If you paid qualifying expenses in any year before the adoption became final, you take the credit in the year after the year of the payment. For example, expenses paid in 2021 for an adoption that was not yet finalized would be claimed on your 2022 return. If expenses are paid in the year the adoption becomes final, the credit is taken in that same year. If expenses are paid in any year after the adoption is final, the credit is taken in the year of the payment. This rule applies regardless of whether the expenses were for the current adoption attempt or a prior one. The maximum credit for 2022 is $14,890 per child, subject to the income phase-out starting at MAGI of $223,410.
IF you pay qualifying expenses in... THEN take the credit in... any year before the year the adoption becomes final* the year after the year of the payment. the year the adoption becomes final the year the adoption becomes final. any year after the year the adoption becomes final the year of the payment.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
The form that claims it, and the order its parts are filled in
The 2022 Adoption Credit is claimed on Form 8839, which has multiple parts that must be completed in sequence. Qualified adoption expenses used for the credit cannot include amounts reimbursed by an employer under a written adoption assistance program. Because of this exclusion, you must complete Part III of the form (which deals with employer-provided benefits) before you can calculate the credit in Part II. This order ensures that employer reimbursements are subtracted from your expenses before the credit amount is determined. An exception exists for a child with special needs, where the full $14,890 maximum credit may be available even without actual expenses. The credit is also subject to an income phase-out: it begins to reduce when modified adjusted gross income reaches $223,410 and is fully eliminated at $263,410.
For purposes of calculating the adoption credit in Part II, qualified adoption expenses don't include expenses reimbursed by an employer under a written qualified adoption assistance program (see Employer-Provided Adoption Benefits). For this reason, you must complete Form 8839, Part III, before you can figure the credit, if any, in Part II. But see Child with special needs.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
What happens if the adoption falls through
If you paid qualified adoption expenses in an attempt to adopt a U.S. child and the adoption attempt was unsuccessful, those expenses are not lost. The IRS treats them the same way it treats expenses paid for an adoption that was not yet final by the end of the year. This means the expenses carry forward and can be claimed on a later tax year's return, rather than being forfeited. The rule applies specifically to domestic adoptions - that is, attempts to adopt a U.S. citizen or resident child - where the credit can be claimed even before an adoption becomes final. By contrast, expenses from a failed foreign adoption attempt generally cannot be carried forward. The maximum credit available in subsequent years remains $14,890 per child, though the credit phases out once modified adjusted gross income reaches $223,410 and is fully eliminated at $263,410.
Unsuccessful adoption. If you paid qualified adoption expenses in an attempt to adopt a U.S. child and the attempt was unsuccessful, treat those expenses in the same manner as expenses you paid for adoptions not final by the end of the year.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
Whether the credit is refundable, or only reduces what you owe
The 2022 Adoption Credit is nonrefundable, which means it can reduce the federal income tax you owe to zero but cannot by itself produce a refund. When you figure the credit on Form 8839, a worksheet on line 15 caps the credit at your total tax liability for the year. If the credit you qualify for - up to the $14,890 maximum for 2022 - is larger than the tax you owe, the difference is not paid to you as a refund. Instead, any portion of the credit that you cannot use because it exceeds your tax liability may be carried forward to offset tax in later years, subject to the same nonrefundable limit each year. The credit is further reduced or eliminated once your modified adjusted gross income reaches the phase-out range, beginning at $223,410 and fully phased out at $263,410, regardless of how much tax you owe.
Complete the credit limit worksheet to figure the limit of your nonrefundable adoption credit.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
What counts as a qualified adoption expense
For the 2022 Adoption Credit, the IRS defines qualified adoption expenses as costs that are reasonable and necessary, directly tied to the legal adoption of an eligible child, and incurred primarily for that purpose. The types of costs the IRS lists as qualifying include adoption fees paid to an agency, attorney fees, court costs, and travel expenses such as meals and lodging incurred while away from home for the adoption. If a foreign child is adopted, re-adoption expenses (costs of completing the adoption in a U.S. court) also count. The credit can be as much as $14,890 per eligible child for 2022, but certain costs are excluded: amounts reimbursed by an employer or covered by a state, local, or federal program; expenses that violate state or federal law; costs connected with a surrogate parenting arrangement; expenses related to adopting a spouse's child; and any expense already claimed as a credit or deduction under another part of the federal tax code. The credit is also subject to an income phase-out that begins at a modified adjusted gross income of $223,410 and is fully phased out at $263,410, so higher-income taxpayers may receive a reduced credit or none at all.
Qualified adoption expenses are reasonable and necessary expenses directly related to, and for the principal purpose of, the legal adoption of an eligible child.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
Adopting your stepchild does not qualify for the credit
The 2022 Adoption Credit covers certain expenses a taxpayer pays to adopt an eligible child, but it does not extend to every adoption-related cost. Among the categories the IRS lists as disqualified, one stands out for blended families: expenses incurred for the adoption of a taxpayer's spouse's child - that is, a stepchild the taxpayer has not legally adopted before the marriage - cannot be counted toward the credit. The exclusion applies even when the couple is married filing jointly and the other spouse paid or is paying for the adoption. Because those expenses are not "qualified adoption expenses," they are ineligible for both the credit and any employer-provided adoption benefit exclusion. The credit itself is worth up to $14,890 per child for 2022, but that maximum applies only to children whose adoption expenses actually qualify under the rules. A taxpayer who is considering the credit for a stepchild adoption should look to other tax provisions, since the Adoption Credit will not provide a benefit for those costs.
Qualified adoption expenses don't include expenses: • For which you received funds under any state, local, or federal program; • That violate state or federal law; • For carrying out a surrogate parenting arrangement; • For the adoption of your spouse's child; • Reimbursed by your employer or otherwise; or • Allowed as a credit or deduction under any other provision of federal income tax law.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
Who decides a child has special needs
For the federal Adoption Credit, a state - including the District of Columbia - decides whether a child has special needs. The state must make three findings: the child was a U.S. citizen or resident when the adoption effort began; the state has determined the child cannot or should not be returned to the birth parents' home; and the state has determined the child will not be adopted unless assistance is provided to the adoptive parents. States may look at factors such as the child's age, ethnic background, whether the child is part of a minority or sibling group, or whether the child has a medical condition or a physical, mental, or emotional disability. Having one of those characteristics alone is not enough - the state must formally make the special-needs determination before the child is treated as a child with special needs for credit purposes. When a child meets this definition, an eligible adoptive parent may claim the full maximum credit of $14,890 for 2022 even without paying any qualified adoption expenses, subject to the income phase-out that begins at modified adjusted gross income of $223,410 and is fully phased out at $263,410.
The state has determined that the child won't be adopted unless assistance is provided to the adoptive parents.
2022 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2021-45 (IRS)
- Maximum credit
under § 23(b)(1) the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $14,890.
- Phase-out threshold
The available adoption credit begins to phase out under § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $223,410
- Fully phased out
under § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $223,410 and is completely phased out for taxpayers with modified adjusted gross income of $263,410 or more.