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Adoption Credit Calculator for 2026$17,670 Limit and Phase-Out

What do these figures come to once the work is shown?

Adoption credit from qualified expenses or special needs status after the MAGI phase-out, with the refundable amount.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Adoption credit
$8,835
For 2026, per child
Credit before the income limit
$17,670
Reduction for income
$8,835
Drawn to one scale
Adoption credit$8,835
Credit before the income limit$17,670
Reduction for income$8,835
Part of the credit that can be refundable (up to)$5,120
All results
MeasureResult
Adoption credit$8,835
Credit before the income limit$17,670
Reduction for income$8,835
Part of the credit that can be refundable (up to)
2026 refundable amount is $5,120
$5,120
How this was worked out
Work shownrecomputed as you type
Credit before limit = lesser of qualified expenses and $17,670 (a special needs child receives $17,670)
Reduction ratio = (modified AGI - $265,080) / $40,000, between 0 and 1
Credit = credit before limit x (1 - ratio)
Refundable portion: up to $5,120

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • Credit before limit = lesser of qualified expenses and $17,670 (a special needs child receives $17,670)
  • Reduction ratio = (modified AGI - $265,080) / $40,000, between 0 and 1
  • Credit = credit before limit x (1 - ratio)
  • Refundable portion: up to $5,120

How it works

Section 23 gives a credit for qualified adoption expenses. For 2026, Rev. Proc. 2025-32 sets the maximum at $17,670, phases it out for modified AGI from $265,080 to $305,080, and sets $5,120 as the refundable amount.

Expenses paid before the adoption is final are claimed in the following year, and expenses paid in or after the year the adoption becomes final are claimed in the year paid. Unused credit carries forward up to five years. Employer adoption assistance has a separate exclusion with the same limit and phase-out in section 137.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

Does a special needs adoption need expenses?

Rev. Proc. 2025-32 states the credit allowed for adopting a child with special needs is $17,670 for 2026. This tool uses that amount.

Is there a similar employer benefit?

Yes. Section 137 excludes employer adoption assistance up to the same $17,670 with the same phase-out.

Does the credit carry forward?

Yes, up to five years after the year the credit arose.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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