Questions & Answers

What is the Adopted Foster Child Credit?

A taxpayer is entitled to an income tax credit for the adoption of a qualified foster child. This credit applies to adoptions occurring in taxable years beginning on or after January 1, 2008.

A qualified child is defined as a child who is under 18 years of age, and is in a foster home or otherwise in the foster care system under the Division of Family and Children Services (DFCS).

If the adoption occurred between January 1, 2008 and December 31, 2020:
The amount of the credit is $2,000 per qualified child per taxable year, beginning with the year in which the adoption became final and ending in the year in which the adopted child turns 18. Any unused credit may be carried forward until used.

If the adoption occurred on or after January 1, 2021:
The amount of the credit is $6,000 per qualified foster child per taxable year, beginning with the year in which the adoption became final, for five taxable years and $2,000 per wualified foster child per taxable year thereafter, and ending in the year in which the adopted child turns 18. This credit can't be carried forward.

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