Adoption Tax Credit Updates You Need to Know for 2025

Questions about the adoption tax credit for 2025? Call Steve now at (678) 717-9818 or email Steve at steve@bookstaxesatl.com and Message Steve directly on LinkedIn www.linkedin.com/in/steveperrybtm

Adoption is expensive, emotional, and life changing. The IRS knows this. That is why IRS Tax Tip 2025-71 highlights important improvements to the adoption tax credit that can significantly reduce the federal tax burden for families who adopt in 2025 and beyond.

But the credit is not automatic. The rules are technical. The documentation requirements are strict. And mistakes can delay refunds or trigger IRS correspondence at the worst possible time.

This is exactly where Steve Perry, EA steps in to protect families and make sure they receive every dollar they are legally entitled to.

What IRS Tax Tip 2025-71 Emphasizes

Tax Tip 2025-71 explains updates and reminders tied to the adoption tax credit, including expanded eligibility thresholds, inflation adjusted limits, and continued availability of the credit for both domestic and international adoptions.

The adoption tax credit helps offset qualified adoption expenses, which may include adoption fees, court costs, attorney fees, travel expenses, and other directly related costs. For many families, this credit can mean thousands of dollars in tax relief, but only if it is reported correctly.

If you are in the middle of an adoption or finalized one recently, this is the moment to act. Waiting until filing season often leads to rushed filings and avoidable errors.

If you are unsure whether your expenses qualify or how to report them, reach out now to Steve Perry, EA at (678) 717-9818 for clear answers before mistakes are made.

Why the Adoption Tax Credit Causes IRS Problems

The adoption credit is one of the most commonly misunderstood credits on individual returns. The IRS frequently questions these claims because of incomplete documentation, incorrect carryforward calculations, or confusion about when expenses can be claimed.

Tax Tip 2025-71 reinforces that taxpayers must properly substantiate adoption related expenses and correctly apply income limitations and credit phaseouts. Errors can result in refund delays, credit denials, or IRS notices requesting additional proof.

Steve Perry specializes in getting it right the first time. He ensures your adoption credit is calculated accurately, supported with proper documentation, and reported in a way that aligns with IRS expectations.

If you have already filed and are worried something was missed, help is still available. Early intervention can prevent problems from escalating.

Who Should Pay Special Attention to Tax Tip 2025-71

This IRS guidance matters if you are
• Finalizing a domestic or international adoption
• Incurred adoption expenses before finalization
• Carrying forward unused adoption credits from prior years
• Approaching income phaseout limits
• Concerned about IRS scrutiny or delayed refunds

The adoption credit can be complex, especially when adoptions span multiple tax years. Steve Perry works directly with families to map expenses to the correct year and maximize allowable credits without risking compliance issues.

If your family cannot afford an IRS mistake during such an important life event, now is the time to get professional help.

Why Families Trust Steve Perry, EA

Steve Perry is known for his calm, methodical approach to IRS reporting and his ability to explain complicated tax rules in plain English. He understands that adoption is deeply personal and that financial stress should not overshadow a joyful milestone.

He does not just prepare returns. He advocates for his clients, anticipates IRS questions, and ensures filings are defensible and complete.

If you want confidence that your adoption tax credit is handled correctly, call Steve at (678) 717-9818 today.

Do Not Leave Adoption Tax Credits on the Table

IRS Tax Tip 2025-71 is a reminder that adoption tax benefits exist for a reason, but they only help families who claim them properly. With updated limits and ongoing IRS scrutiny, professional guidance is no longer optional.

Contact Steve Perry, EA now to protect your refund and your peace of mind.
Call (678) 717-9818, email Steve at steve@bookstaxesatl.com, or Message Steve directly on LinkedIn www.linkedin.com/in/steveperrybtm.

When it comes to adoption tax reporting, experience matters, accuracy matters, and timing matters. Steve Perry, EA is ready to help you get it right.