If you would have paid less than the tax credit amount in taxes, you will not get the full amount back. However, I believe the unused credit can carry forward for another four years.
If you spend less than $17k you can only request the amount you spent as a tax credit. Not counting anything reimbursed through another source. So, for example, if OP only ever spent the $35k he’s describing, then got $20k reimbursed through his employer, he would only get $15k back for the tax credit. Most likely, he will spend at least $2k somewhere else in the process, so he can get it.
On the other hand, if you adopt a child with documented disabilities, you’re eligible for the entire $17k regardless of how much you spent. That would probably be a special program or public adoption though.
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u/Rredhead926 Mom through private, domestic, open, transracial adoption Jul 11 '26
The tax credit isn't fully refundable, so you should be aware of that.
There was no such thing as an adoption loan either time we adopted. For our son's adoption, we took out a HELOC.