Refundable adoption tax credit brings relief to Georgia families

A newly refundable adoption tax credit is giving Georgia families some financial relief as they take on the often expensive process of adoption.

One Georgia mother says she didn’t even realize the credit existed until after her daughter’s adoption was complete. Now that recent changes allow part of the credit to be refunded, she believes it will make a meaningful difference in her family’s future.

Katelyn Ward finalized the adoption of her daughter, August, in February after first meeting her while coaching softball. She said learning about the credit after the fact was an unexpected but welcome development.

“I was pretty excited about it. I’m sure you know it, and anyone else knows that the economy now is very high, and it takes a lot to be able to live comfortably,” she said.

Ward said she and her husband both work hard and want to give their daughter opportunities they didn’t have growing up. Under changes that took effect for the 2025 tax year through the “One Big Beautiful Bill Act,” families can now claim up to $5,000 as a refundable credit. That means eligible families may receive the money as a refund, even if they do not owe federal income taxes.

According to a report from the U.S. Government Accountability Office, many adoptive parents are unaware the credit exists or are unsure how to properly claim it.

Ward said the additional financial support will allow her family to go beyond meeting basic needs for August, who spent several years in foster care before being adopted. She hopes it will help create more opportunities and stability moving forward.

“I’m an ordinary person just like anybody else,” Ward emphasized. “My husband, our family, we all work for what we want and need, and like I said before, this is going to be able to provide more than what we have now. So it’s going to be great.”

Ward plans to claim the credit for the first time when filing her 2026 taxes. The Government Accountability Office has recommended that the Internal Revenue Service improve outreach efforts so more families—especially those working with state adoption agencies—are aware of the benefit.

The full credit is available in cases involving special needs adoptions, which includes most foster care placements like August’s. Her adoption was made possible through a partnership between the Dave Thomas Foundation for Adoption and the state of Georgia.