03/04/2026
Parents and families may be eligible for one or more available tax credits that could reduce their tax bill.
To qualify for any of the various credits, the child and taxpayer must have a valid social security number.
The Child Tax Credit
A qualifying child must be:
• A son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew) who can be claimed as a dependent on the taxpayer’s return
• Under age 17 at the end of the year
• A U.S. citizen, U.S. national or U.S. resident alien
In addition, the taxpayer’s annual income can’t exceed $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim part of the credit. For 2025, the amount of the Child Tax Credit is up to $2,200 per qualifying child. For 2025, up to $1,700 per qualifying child may be refundable.
Adoption Tax Credit
The Adoption Tax Credit is available to taxpayers who finalized an adoption in 2025 or started the adoption process before 2025.
A qualifying child must be:
• Under age 18, or
• Physically or mentally incapable of self-care
Eligible expenses:
• Reasonable and necessary adoption fees
• Court costs and legal fees
• Adoption related travel expenses like meals and lodging
• Other expenses directly related to the legal adoption of an eligible child
The maximum amount, for 2025, is $17,280 per eligible child. Additionally, there’s been changes to the Adoption Tax Credit under the One, Big, Beautiful Bill. The credit is now partially refundable, meaning taxpayers may get back more than what is owed in taxes. The refundable amount is up to $5,000 per qualifying child for tax years 2025 and after. However, any nonrefundable amount carried forward can’t be used to calculate a refundable portion for future tax years.
For more information go to irs.gov or consult your tax professional.
