Tax benefits for parents and families
March 03, 2026
from the IRS
Parents and families may be eligible for one or more available tax credits that could reduce their tax bill. Each credit has different eligibility criteria.
The first step is ensuring each child has a social security number. To qualify for any of the various credits, the child and taxpayer must have a valid social security number.
Tax credits for parents and families
Child Tax Credit
A qualifying child must be:
- A son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew) who can be claimed as a dependent on the taxpayer’s return
- Under age 17 at the end of the year
- A U.S. citizen, U.S. national or U.S. resident alien
In addition, the taxpayer’s annual income can’t exceed $200,000 ($400,000 if filing a joint return). Parents and guardians with higher incomes may be eligible to claim part of the credit. For 2025, the amount of the CTC is up to $2,200 per qualifying child. The Additional Child Tax Credit is a refundable portion of the CTC. For 2025, up to $1,700 per qualifying child may be refundable.
Adoption Tax Credit
The Adoption Tax Credit is available to taxpayers who finalized an adoption in 2025 or started the adoption process before 2025.
A qualifying child must be:
- Under age 18, or
- Physically or mentally incapable of self-care
Eligible expenses:
- Reasonable and necessary adoption fees
- Court costs and legal fees
- Adoption related travel expenses like meals and lodging
- Other expenses directly related to the legal adoption of an eligible child
The maximum amount, for 2025, is $17,280 per eligible child. Additionally, there’s been changes to the Adoption Tax Credit under the One, Big, Beautiful Bill. The credit is now partially refundable, meaning taxpayers may get back more than what is owed in taxes. The refundable amount is up to $5,000 per qualifying child for tax years 2025 and after. However, any nonrefundable amount carried forward can’t be used to calculate a refundable portion for future tax years.
Indian tribal governments now have the same authority as state governments to determine whether a child has special needs for the purpose of claiming the Adoption Credit. Taxpayers who adopt an eligible U.S. child with special needs may be able to claim the credit even if they didn’t pay any qualified adoption expenses.
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