2023 IA 177
Iowa Adoption Tax Credit
tax.iowa.gov
41-154a (07/24/2023)
Name(s): _____________________________________ Social Security Number (SSN): ____________
Part I – Information about your eligible adopted child
1. Child’s full name: ________________________________________________________________
2. Child’s identifying number: _________________________________________________________
3. Was the adopted child placed in Iowa?
Yes ☐ ..... Continue to line 4.
No ☐ ..... Stop. You are not eligible to take this credit.
4. Has the adoption been finalized?
Yes ☐ ..... Continue to line 5.
No ☐ ..... Stop. You are not eligible to take this credit.
5. Year the adoption became final: ____________________________________________________
6. Child’s age at adoption: ___________________________________________________________
7. Name of other adoptive parent if not included on the IA 1040: _____________________________
8. SSN of other adoptive parent: ______________________________________________________
Part II – Iowa Adoption Tax Credit calculation
9. If the adoption for this child was finalized during 2023, include the adoption
expenses paid or incurred prior to or during this tax year. If the adoption was
finalized prior to 2023, include expenses paid or incurred during this tax year
only. (If filing claims separately, see instructions.) ................................................... 9. ____________
10. Total adoption expenses included in line 9 that were reimbursed
by an employer or other entity .................................................................................10. ___________
11. Total qualified adoption expenses paid or incurred for this child.
Subtract line 10 from line 9 ......................................................................................11. ___________
12. Iowa Adoption Tax Credits claimed for the adoption of this child by this
taxpayer in other tax years ......................................................................................12. ___________
13. Iowa Adoption Tax Credits claimed for the adoption of this child by other
taxpayers in this or other tax years ..........................................................................13. ___________
14. Other credits claimed. Add lines 12 and 13 ............................................................14. ___________
15. Subtract line 14 from $5,000. Cannot be less than zero .........................................15. ___________
16. Iowa Adoption Tax Credit. Enter the smaller of line 11 or 15. Also enter in
column K of Part II on the 2023 IA 148 Tax Credits Schedule ...............................16. ___________
IA 148 Tax Credits Schedule must be completed.
2023 IA 177 Instructions
41-154b (07/24/2023)
The Iowa Adoption Tax Credit equals the
smaller of $5,000 or qualified adoption
expenses paid or incurred by the taxpayer in
connection with the adoption of a child by the
taxpayer. Include only one adopted child per IA
177.
If you and your spouse adopted the child
together and file jointly, complete only one IA
177 as only one credit may be claimed between
the two of you. If you and your spouse file
separately, each spouse must complete an IA
177 as the credit must be divided between the
two of you. If you and another adoptive parent
each paid qualified adoption expenses to adopt
the same child, you must each complete an IA
177. Expenses may be divided as agreed
between the adoptive parents when completing
two IA 177 forms.
“Qualified adoption expenses” are
unreimbursed expenses paid or incurred in
connection with the adoption of a child, including
medical and hospital expenses of the biological
mother that are incident to the child’s birth,
welfare agency fees, legal fees, and all other
fees and costs related to the adoption.
The credit can only be claimed once an adoption
is finalized. You may not claim the credit for
expenses related to an adoption that has not
become final.
The child must be permanently placed in Iowa
by an adoption service provider or by an agency
meeting the requirements of the Interstate
Compact on the Placement of Children.
Line 2: The child’s identifying number can be a
Social Security Number (SSN), an adoption
taxpayer identification number, or an individual
taxpayer identification number. Leave the line
blank if no number is available.
Line 7: If you and another person adopted the
child, report the name of the other parent if not
reported on the IA 1040.
Line 8: If you and another person adopted the
child, report the SSN of the other parent if not
reported on the IA 1040. If you cannot obtain
that number, you may leave the line blank.
Line 9: Report all the adoption expenses paid or
incurred prior to or during the tax year the
adoption was finalized. You may not amend a
prior year return to claim the credit for qualified
expenses paid or incurred prior to the year the
adoption was finalized. If expenses were paid or
incurred by you and your spouse and you are
filing separately or by you and another adoptive
parent, include only your share of the expenses.
Line 12: If you claimed Iowa Adoption Tax
Credits for this child in a different tax year, report
those amounts here. Report all amounts
claimed on a married filing jointly return.
Line 13: Report all Iowa Adoption Tax Credit
claims made by another taxpayer for this child.
Include amounts paid this tax year or in a
different tax year unless you made claims on a
married filing jointly return.
Report the tax credit claim in column K of Part II
on the 2023 IA 148 Tax Credits Schedule; use
tax credit code 66 in column I and leave column
J blank. If you have completed multiple IA 177
forms, report each credit separately on the IA
148.
Any tax credit in excess of tax liability can be
refunded or credited
to tax liability for the
following year.
Include this form and the IA 148 with your IA
1040.
