YourVoice.Now Summary
Your MoneyAdopting families who owe little or no federal income tax could get the adoption credit paid out as a refund.
Your Money
Today the adoption credit can only cancel federal income tax you owe. The bill would pay out the rest as a refund, so families with small tax bills would get the full amount.
Under today's rules, credit you cannot use rolls over to later tax years. Any leftover amount would instead be added to your refund in the first year the new rules apply.
The IRS would have to write one standard affidavit — a signed statement from an outside party — that proves a legal adoption. It would also cover adoptions of children with special needs, which the credit treats separately.
More about this bill
If you adopt a child, you could get the full adoption tax credit back as cash. Today the credit can only cancel federal income tax you owe. Families who owe little or no tax get little or none of it. That would change under this bill. The credit would be paid out even if your tax bill is zero. The new rules would apply to tax years that start after December 31, 2024. Credit you could not use in past years would be paid to you in that first year. The IRS would also have to create one standard form, signed by an outside party, to prove a legal adoption took place. That form would cover adoptions of children with special needs. How big the credit is, and the income limits on it, would not change.
Congressional Summary
Adoption Tax Credit Refundability Act of 2025 This bill makes the federal adoption tax credit refundable. The bill also requires the Internal Revenue Service to provide for a standardized third-party affidavit for purposes of verifying a legal adoption. As background, individuals may claim a tax credit for qualified expenses to adopt a child. The maximum amount of the tax credit is $17,280 per child for 2025, which is adjusted annually for inflation. Income limitations apply. Under current law, the adoption tax credit is not refundable but may be carried forward for up to five subsequent tax years to reduce taxable income in those years.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-04-10
- Date Added
- 2026-09-22
- Source
- Congress.gov →
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