United States · Federal tax · Adoption credit
2027 adoption credit limits.
The maximum adoption credit for tax year 2027, how much can be refunded, where the income phase-out starts and ends, and an estimate for your own numbers.
Short answer: For tax years beginning in 2027 the adoption credit is up to $18,250 of qualified adoption expenses per child, and a special needs adoption is treated as having the full $18,250. Up to $5,280 of the credit can be refunded. The credit starts to shrink when modified adjusted gross income is above $273,680 and is gone at $313,680 or more. These are the amounts in IRS Revenue Procedure 2026-35.
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The 2027 adoption credit limits
| Item (tax year) | 2027 | Where it comes from |
|---|---|---|
| Maximum credit per child | $18,250 | Section 3.04(2), qualified expenses up to this amount |
| Special needs adoption | $18,250 | Section 3.04(1), credit allowed for the adoption of a child with special needs |
| Refundable portion | $5,280 | Section 3.04(3), the amount used for the refundable part |
| Phase-out starts (MAGI over) | $273,680 | Section 3.04(2) |
| Fully phased out (MAGI of) | $313,680 | Section 3.04(2) |
The phase-out range is $40,000 wide ($313,680 minus $273,680), and that width is how the reduction is figured. The credit is claimed on Form 8839 with your return. The 2026 amounts are on the adoption tax credit 2026 calculator.
What changed from 2026
Revenue Procedure 2026-35 raises every adoption credit amount for 2027 for inflation. The maximum credit and the special needs amount are $18,250 for 2027. The refundable part is $5,280. The phase-out now starts at $273,680 of modified adjusted gross income and ends at $313,680. If your 2026 figures came from the 2026 page, use that page for a 2026 return; the 2027 amounts apply to taxable years beginning in 2027, so they matter for a return filed in 2028 and for planning during 2027.
Worked example
A family adopts one child and has $25,000 of qualified expenses with modified adjusted gross income of $300,000. Expenses above the cap do not count, so the credit before the phase-out is $18,250. Income is $300,000 minus $273,680, which is $26,320 over the start, and $26,320 divided by $40,000 is 65.8 percent. The credit is cut by 65.8 percent to $6,241.50. Of that, $5,280 is the refundable part and the remaining $961.50 is limited by income tax and carried forward. A family at $150,000 with the same expenses gets the full $18,250.
For a special needs adoption the credit is $18,250 whatever the expenses were, before the same phase-out.
Common mix-ups
- The refundable part is not a separate credit. It is the amount of the one credit that can be refunded, up to $5,280. The rest depends on your tax.
- Expenses above the cap do not carry into the credit. The $18,250 is a limit on the qualified expenses that count for one child.
- The credit is for the year the amounts apply to. Rev. Proc. 2026-35 is for taxable years beginning in 2027. A return for 2026 uses the 2026 amounts.
- Modified adjusted gross income is not your salary. It is adjusted gross income with certain exclusions added back, so use the Form 8839 instructions to figure it.
- Employer adoption assistance is a separate benefit. The IRS lists its own exclusion amount in the same revenue procedure; it has a different limit and income range.
Method
The estimator takes the smaller of your qualified expenses and $18,250, or $18,250 for a special needs adoption. It then finds how far your modified adjusted gross income is above $273,680, divides by the $40,000 range, caps that share at 100 percent and removes that share of the credit. The refundable amount shown is the smaller of the credit and $5,280. This follows the statute's ratio method as described in the revenue procedure. It does not apply the limit based on your income tax liability or the carryforward rules, so the part that is not refundable is only an upper bound on what carries forward. Amounts were read from the revenue procedure on November 9, 2026.
What this does not cover
- Which expenses qualify, the year you may claim them and the documentation Form 8839 asks for.
- Foreign adoptions, which have their own timing rule, and the income tax liability limit.
- The employer adoption assistance exclusion and its phase-out.
- State adoption credits.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- IRS Revenue Procedure 2026-35: 2027 inflation adjustments (sections 3.02, 3.04 and 3.15) (retrieved November 9, 2026)
- IRS: About Form 8839, Qualified Adoption Expenses (retrieved November 9, 2026)
Frequently asked questions
What is the adoption credit for 2027?
Up to $18,250 of qualified adoption expenses per child, and a special needs adoption is treated as the full $18,250, for taxable years beginning in 2027.
How much of the 2027 adoption credit is refundable?
Up to $5,280 of the credit can be refunded. The rest is limited by your tax and carried forward.
When does the 2027 adoption credit phase out?
It starts to shrink when modified adjusted gross income is above $273,680 and is gone at $313,680 or more.
How is the adoption credit phase-out calculated?
The income over $273,680 is divided by the $40,000 range, and that share of the credit is removed.
Is the 2027 adoption credit higher than 2026?
Yes. The 2027 maximum is $18,250, adjusted for inflation by Revenue Procedure 2026-35. The 2026 amounts are on the 2026 calculator.
Do I need receipts for the adoption credit?
The credit is based on qualified adoption expenses and you file Form 8839. Keep records of the expenses; the form instructions list what to attach.
Where is the official number?
IRS Revenue Procedure 2026-35, section 3.04, linked in the sources.
Not legal or tax advice
This page is general information from an unofficial guide, not tax advice. Credit rules have limits and exceptions that depend on the adoption and the year. Use Form 8839 and its instructions, or a tax professional, before you file. Nothing you type is sent anywhere. It runs in your browser.