Adoption Tax Credit [2025]
Cost is one of the biggest barriers hopeful families face when considering adoption in Pennsylvania. But what if you could claim thousands of dollars back for your adoption expenses? The adoption tax credit can help make building your family a reality—and it’s available to many Pennsylvania families.
With the right agency on your side, understanding the tax credit for adoption and other financial resources isn’t just easier—it’s the path to the family you’ve been waiting for. At American Adoptions, we’re here to answer all your questions, help you navigate your adoption costs, and support you every step of the way.
Don’t wait another day—schedule a consultation with us today and see how we can help you create the family you deserve.
What Is the Adoption Tax Credit?
The adoption tax credit is a federal tax benefit that helps ease the financial burden of adoption for eligible families. For adoptions finalized in 2025, families can claim a tax credit for qualifying adoption expenses—such as agency fees, legal fees, and travel costs.
For 2025, the IRS will announce the final maximum amount in early 2025, but for reference, the adoption tax credit 2024 limit is $16,810 per child. The credit covers most types of adoption—including domestic, international, and foster care adoptions.
How to Claim the Adoption Tax Credit (Form 8839)
To claim the adoption tax credit, you’ll need to file IRS Form 8839 (“Qualified Adoption Expenses”) with your federal tax return. Here’s how to get started:
Key points for Pennsylvania families:
- The credit is non-refundable, but you can carry forward any unused portion for up to five years.
- Expenses paid before the adoption is finalized may still qualify.
- Special needs adoptions may allow you to claim the full credit, even if your expenses were less.
Can Pennsylvania Families Get Additional Tax Help?
Currently, Pennsylvania does not have a separate state adoption tax credit for adoptive families. All tax credits available for adoption are provided through the federal government.
However, Pennsylvania families may qualify for other forms of adoption assistance, including subsidies and reimbursement for specific types of adoption (especially through foster care). If you’re adopting from foster care, you may receive a monthly subsidy or assistance with non-recurring adoption expenses.
Not sure what you qualify for? The experienced specialists at American Adoptions can help you understand all your options and maximize your benefits.
Adoption Financing Options in Pennsylvania
In addition to the federal adoption tax credit, families have access to a wide range of adoption financing options. Here are some organizations that offer grants and loans for adoptive families in Pennsylvania:
- A Child Waits Foundation
- Offers grants and low-interest loans to families pursuing domestic or international adoption, including those in Pennsylvania.
- Eligibility: U.S. citizens adopting through a licensed agency. Need-based; preference for lower- and middle-income families.
- Gift of Adoption Fund – Pennsylvania Chapter
- A national grant program with a Pennsylvania chapter. Awards grants to help complete adoptions for families with financial need (up to $15,000).
- Eligibility: U.S. citizens adopting domestically, internationally, or from foster care. Must demonstrate financial need.
- HelpUsAdopt.org
- National nonprofit offering grants up to $20,000 to help cover the cost of adoption (any type).
- Eligibility: U.S. citizens, regardless of marital status, orientation, or religion. Must have a completed home study and show financial need.
- National Adoption Foundation Grants & Loans
- Provides grants and unsecured loans to help with adoption-related expenses, including agency fees, home studies, and travel.
- Eligibility: Open to all U.S. citizens adopting domestically or internationally; awards based on financial need.
You don’t have to figure it all out on your own. Our team will help you identify every possible financial resource, so you can focus on what matters—growing your family.
How an Agency Can Help You Budget for Adoption
Choosing the right adoption agency isn’t just about expertise—it’s about financial peace of mind and support every step of the way.
At American Adoptions, we know what’s at stake for Pennsylvania families. Our transparent cost breakdowns, experienced guidance, and unique adoption disruption insurance mean you’ll never be left wondering, “Can I afford this?” We help you budget for adoption with honesty, clarity, and compassion.
What sets American Adoptions apart?
You deserve a family, and you deserve a clear path to parenthood. Don’t risk your financial future on agencies that aren’t fully licensed or don’t offer the protection you need.
Your Path to Adoption Starts Here
What if the next chapter of your family’s story could start today?
The adoption tax credit, combined with expert guidance and support from American Adoptions, can help make your dream of parenthood possible—right here in Pennsylvania.
Don’t wait to take the next step. Speak with a specialist at American Adoptions today and discover the difference our agency can make for your journey—and your peace of mind.
Disclaimer
Information available through these links is the sole property of the companies and organizations listed therein. American Adoptions provides this information as a courtesy and is in no way responsible for its content or accuracy.