The Adoption Tax Credit (ATC) was introduced to the U.S. tax code in 1997 to help offset the costs associated with adoption. It is a tax credit that reduces your tax liability dollar per dollar, up to the amount of the credit. The maximum amount of the credit has increased over the years, and for 2023, it is $14,890 for each eligible child adopted.
The ATC can provide significant financial assistance to families who adopt. It can help to cover the costs of adoption, such as agency fees, legal fees, and court costs. The credit is also available to families who adopt children with special needs. In addition to the financial assistance it provides, the ATC can also help to raise awareness of adoption and encourage more families to adopt.
