The adoption tax credit allows adoptive parents of children in foster care to deduct adoption expenses from their federal taxes such as necessary adoption fees, court costs, attorney fees, traveling expenses (including meals and lodging while away from home), and other expenses directly related to the legal adoption of an eligible child. All children in foster care under the responsibility of a Title IV-E agency, including all children photolisted on Covenant Christian Children’s Homes of Texas, are eligible for this tax credit.
An adoptive family can apply this credit toward their federal tax liability, meaning it can offset what they owe in federal taxes for the year but cannot increase the amount of a refund.
