MO-RAC: Refundable Adoption Credit Claim (2025)

Who files this form

Use Form MO-RAC to claim Missouri’s Refundable Adoption Tax Credit for tax year 2025. Eligible claimants include:

• Missouri residents with qualifying nonrecurring adoption expenses.
• Business entities that provide funds to an employee to proceed in good faith with adopting a child.

Qualifying expenses include reasonable and necessary adoption fees, court costs, attorney fees, and other expenses directly related to the legal adoption. The expenses must not violate federal, state, or local law.

Only one credit is available for each adopted child. The credit is allowed regardless of whether the child is a Missouri resident or a ward of a Missouri resident when the adoption begins.

What you'll need

Have the following information and forms ready:

• Claimant information: Name, address, applicable tax identification numbers, and tax type.
• Child information: Name, birthdate, Social Security number if available, state or country of origin, placement date, and date the adoption became final, as applicable.
• Expense and payment amounts: Adoption fees, court costs, attorney fees, other directly related expenses, and amounts paid by Children’s Division, an employer, or government programs.
• Federal Form 8839 information: The adoption tax credit claimed on Line 16 for the specified child.
• Forms MO-TC and MO-1040: The instructions say to submit these with Form MO-RAC.

Part D requires certification by the Missouri Department of Social Services, Children’s Division, that the expenses will not be reimbursed from government program funds.

If you answer yes to both special-needs questions in Part B, attach a physician’s statement indicating that the child is physically or mentally incapable of caring for themselves and living independently of the adoptive parents. The form says to complete Part E only for special-needs adoptions when the adopted individual is age 18 or older.

How to file

1. Complete Part A with the claimant’s information and select the correct tax type.
2. Complete Part B with the child’s information, answer the questions, and select whether the claim is for placement in the home or a finalized adoption.
3. Complete Part C with adoption expenses and payment amounts. Employers enter their total on Line 5, then skip to Line 11.
4. Obtain the required Part D certification and, if applicable, Part E certification. Complete the signature and date fields.
5. Attach Form MO-RAC to Form MO-TC and submit them with Form MO-1040, as directed in the instructions.

The mailing address printed on the form is:

Taxation Division

Individual Income Tax

P.O. Box 27

Jefferson City, MO 65105-0027

For help, call (573) 751-3220 or email taxcredit@dor.mo.gov.

Common mistakes

• Leaving out the required attachments. Form MO-RAC must be attached to Form MO-TC and submitted with the tax return.
• Missing the physician’s statement. It is required if you answer yes to both special-needs questions in Part B.
• Completing Part E unnecessarily. The form says to complete it only for special-needs adoptions when the adopted individual is age 18 or older.
• Entering a negative amount on Line 11. If Line 10 exceeds Line 5, enter zero on Line 11.
• Overstating Line 12. Enter the smaller of Line 11 or the tax year 2025 limit of $10,616.

Questions people ask

How much is the credit for tax year 2025?

The credit is limited to the smaller of the amount on Line 11 or $10,616. For adoptive parents, Line 11 subtracts the payments and credits listed on Lines 6 through 9 from total nonrecurring adoption expenses.

Can I claim part of the credit before the adoption is final?

Yes. You may claim 50% of the credit in the year the child is placed in your home and 50% when the adoption is finalized.

What if the credit is more than my tax liability?

The remaining credit may be refunded. The instructions also say the Department must reduce the credit by any income, sales, use, or insurance tax delinquency, including interest and penalties.

Which form do I use for an adoption credit issued before January 1, 2025?

The instructions direct you to Form MO-ATC for an adoption tax credit issued before January 1, 2025.

Official sources

• https://dor.mo.gov/forms/MO-RAC_2025.pdf