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Home » Unlocking the Adoption Tax Credit: A Financial Guide for Building Families with ARC Fertility’s Support

Unlocking the Adoption Tax Credit: A Financial Guide for Building Families with ARC Fertility’s Support

by | Employer, Fertility Blog

Couple with Baby

Embarking on the adoption journey comes with its unique set of challenges, and the associated costs can be significant. From home study to legal fees and ongoing expenses after bringing a child into your family, financial considerations can be overwhelming. 

ARC Fertility understands the complexities of family-building and is committed to supporting individuals and employers alike. This tax season, families exploring adoption may be eligible to claim the Adoption Tax Credit – a potential financial lifeline. We are proud to show our support and offer insights from the National Council For Adoption (NCFA) to help families make adoption more affordable. 

Understanding the Basics of the Adoption Tax Credit with ARC’s Guidance

For adoptions finalized in 2023, families may receive a maximum of $15,950 per adopted child. ARC Fertility, a trusted partner in comprehensive family-forming benefits, recognizes the financial implications of the adoption process. ARC’s commitment to affordability aligns with the goal of making family-building options accessible.

Whether you’re considering adoption or actively in the process, understanding your eligibility and the steps to claim the credit is crucial:

  1. Maximum Credit Amount: The maximum credit for adoptions finalized in 2024 is $16,810 per adopted child. For those finalized in 2023, the maximum is $15,950, and for 2022, it’s $14,890 per child.
  2. Impact on Tax Liability: The Adoption Tax Credit covers tax liability up to the credited amount, potentially increasing the refund by covering tax liability and converting additional child tax credit.
  3. Claiming Timing: The timing of claiming the tax credit varies based on adoption type, with foster care and intercountry adoptions requiring finalization before claiming.
  4. Multiple Adoptions: Families adopting more than one child in the same tax year can claim the credit on a per-child basis.
  5. Required Paperwork: Essential documents include the Final Judgement of Adoption, Subsidy Agreement for foster care adoptions, and a home study and expense receipts for domestic and intercountry adoptions.
  6. State Tax Liability: While this guide focuses on federal tax benefits, many states also offer adoption tax benefits, enhancing the overall financial support.
  7. Qualifying Adoption Expenses: Expenses deemed necessary for the adoption process, such as court and agency fees, attorney fees, and travel expenses, qualify for the credit.
  8. Income Eligibility: For tax year 2023, families with a modified adjusted gross income below $239,230 can claim the full credit, with partial credit eligibility up to $279,230.

ARC’s cost-effective solutions extend beyond fertility treatments to encompass adoption, providing employers with a holistic family-forming benefits package. With its comprehensive family-forming benefits, ARC Fertility provides ongoing support, ensuring employees have the resources they need throughout their adoption journey. ARC’s inclusive solutions cater to diverse family-building paths, offering support for all paths to parenthood. 

ARC Fertility is dedicated to making the path to adoption more accessible, fulfilling and financially feasible for all. Educate yourself about the Adoption Tax Credit with the support of ARC Fertility, a trusted partner in family-forming solutions for employers and individuals. Visit It is important to consult your tax advisor to ensure compliance with all applicable laws and regulations.

Contact us to learn how ARC Fertility guides employers in implementing family-forming benefits seamlessly. 

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