2022 Adoption Credit
For 2022, the Adoption Credit is $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 2026-08-29
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 income limit is measured on modified AGI
The income limit on the adoption credit and the exclusion for employer-provided adoption benefits is measured using modified adjusted gross income (MAGI), not regular adjusted gross income. For 2022, if your MAGI is $223,410 or less, the income limit does not affect your credit or exclusion and you may claim the full amount. Once your MAGI exceeds $223,410, the income limit begins to reduce your credit or exclusion proportionally. When your MAGI reaches $263,410 or more, the income limit eliminates the credit or exclusion entirely. Taxpayers must use the table provided in the Form 8839 instructions to determine the exact reduction based on their MAGI.
The income limit on the adoption credit or exclusion is based on modified adjusted gross income (MAGI).
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)
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.