2024 Adoption Credit
For 2024, the Adoption Credit is $16,810 (Maximum credit), $252,150 (Phase-out threshold) and $292,150 (Fully phased out).
Effective 2024-01-01Source: Rev. Proc. 2023-34 (IRS)Verified 2026-08-29
Compared with 2023
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Maximum credit | $15,950 | $16,810 | +$860 (+5.4%) |
| Phase-out threshold | $239,230 | $252,150 | +$12,920 (+5.4%) |
| Fully phased out | $279,230 | $292,150 | +$12,920 (+4.6%) |
Who it applies to
Taxpayers who adopted a child or paid qualified adoption expenses in a taxable year beginning in 2024, including those who adopted a child with special needs.
What changed this year, and why
For taxable years beginning in 2024, the IRS has announced inflation-adjusted amounts for the Adoption Credit under Internal Revenue Code § 23, as set out in Revenue Procedure 2023-34.
Common questions
- What is the maximum Adoption Credit for 2024?
- For 2024, the maximum Adoption Credit is $16,810 per child. For an adoption of a child with special needs, the full credit of $16,810 is allowed. For other adoptions, the credit is limited to the amount of qualified adoption expenses, up to $16,810.
- When does the 2024 Adoption Credit begin to phase out?
- The credit begins to phase out when modified adjusted gross income (MAGI) exceeds $252,150. It is completely phased out for taxpayers with MAGI of $292,150 or more.
- What income range does the phase-out cover?
- The credit is reduced for MAGI between $252,150 and $292,150, and is eliminated entirely once MAGI reaches $292,150.
Every amount on this page is a published figure rather than yours. The Adoption credit after the income phase-out takes the number you enter and works it out against them, showing which published figure it used.
The credit shrinks as income rises
The adoption credit begins to phase out when your modified adjusted gross income (MAGI) exceeds $252,150. Once your MAGI reaches $292,150 or more, the credit is completely eliminated. For taxpayers with MAGI between these two thresholds, the credit amount is reduced proportionally. The maximum credit available in 2024 is $16,810 per eligible child, but higher-income taxpayers will receive a reduced credit or no credit at all depending on where their income falls within the phase-out range.
This amount begins to phase out if you have modified adjusted gross income in excess of $252,150 and is completely phased out for modified adjusted gross income of $292,150 or more.
2024 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
The income limit is measured on modified AGI
The phase-out of the adoption credit is measured using modified adjusted gross income, not regular AGI or taxable income. If your MAGI is $252,150 or less in 2024, the income limit does not affect your credit. Once MAGI exceeds that threshold, the credit is reduced, and at MAGI of $292,150 or more, the credit is fully eliminated. The same MAGI-based limit applies to the employer-provided adoption benefits exclusion, so both the credit and the exclusion phase out over the same $252,150 to $292,150 income range for 2024.
Income limit. The income limit on the adoption credit or exclusion is based on modified adjusted gross income (MAGI).
2024 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
The credit and the employer exclusion cannot cover the same expense
The adoption credit and exclusion are not separate benefits you can stack on the same dollar of spending. You may use both benefits in the same year for the adoption of the same child, but you cannot apply both the credit and the exclusion to the same qualified expenses. In 2024, the maximum amount for either benefit is $16,810 per eligible child, so a taxpayer could, for example, exclude $16,810 of employer-paid adoption assistance from income and also claim a $16,810 credit, but only if those amounts cover different expenses paid in connection with the adoption. The rule prevents double-counting the same outlay.
But, you can't claim both a credit and exclusion for the same expenses.
2024 Instructions for Form 8839, Qualified Adoption Expenses (IRS)
Unused credit carries forward
If the credit you are allowed to take this year is less than the amount you calculated on Form 8839, the difference does not disappear. The unused portion can be carried forward for up to 5 years, or until it is fully used, whichever happens first. Taxpayers must complete the Adoption Credit Carryforward Worksheet to determine how much of the credit can be used in 2025 and must keep the worksheet because it will be needed again in future years to track the remaining balance.
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.
2024 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. 2023-34 (IRS)
- Maximum credit
under § 23(b)(1) the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $16,810
- 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 $252,150
- Fully phased out
under § 23(b)(2)(A) for taxpayers with modified adjusted gross income in excess of $252,150 and is completely phased out for taxpayers with modified adjusted gross income of $292,150 or more.