How much can I claim for the adoption credit?

Generally, the adoption credit allows you to claim up to $10,960 (for the 2006 tax year) of qualifying expenses related to the adoption. If the adopted child is a citizen or resident of the United States, you can claim an adoption credit even if the adoption is ultimately unsuccessful - but for a foreign child, you may only claim the adoption credit once the adoption has been finalized.

The actual amount of your adoption credit may be limited if the phaseout applies to your situation because of a high adjusted gross income. In addition, when you can actually claim the adoption credit varies based on the nationality of the adopted child and when the adoption fees were incurred.