Author Topic: Adoption Tax Credit  (Read 1270 times)

GRSConstruction

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Adoption Tax Credit
« on: June 13, 2014, 02:29:21 PM »
I was curious if anyone around here has dealt with or is knowledgeable about the adoption tax credit for domestic adoption. We hopefully will be adopting our first baby within the next 10-12 months, could happen sooner, could take longer unfortunately. However, I'm trying to read up a little on the adoption tax credit available.

I know as of 2012 it is considered a non-refundable tax credit. So, am I understanding correctly, that as long as what I paid in exceeds the amount of the tax credit I will get that money back when I do my taxes? For instance, the tax credit for 2014 is $13,190. I paid in about $20,000 in taxes for 2013 and got about $1,500 back. So my total tax liability was approximately $18,500 I guess you could say. So, because that exceeds the $13,190 tax credit amount, would I get that $13,190 back with my normal return? I know I can't file this until the year after the adoption is finalized, but am trying to have a decent understanding of it well before then.

Thanks for any input or help!

Northerly

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Re: Adoption Tax Credit
« Reply #1 on: June 14, 2014, 01:18:04 AM »
Yes, you've got it down. We adopted a child in 2013 and used part of the credit when we filed 2013's taxes. As you said, since it is non-refundable and our tax liability was low, we did not receive the entire amount possible. But you can roll over the balance for up to (I think) 4 more years, so we will eventually receive the entire ~$13,000.

« Last Edit: June 14, 2014, 01:20:08 AM by Northerly »

GRSConstruction

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Re: Adoption Tax Credit
« Reply #2 on: June 14, 2014, 05:25:05 AM »
Awesome, thanks so much for the reply!