How is the Adoption Tax Credit received?

Question

If I filed for the credit on my 2007 return, in which I am receiving a return of $1000, will my return then increas by the amount of the adoption credit? Thanks

Answer 1

Unfortunately you cannot file for the adoption tax credit until after the adoption is finalized.  I'm not sure based on your question if the adoption has occurred yet or not.  The credit is incorporated into your taxes so that basically you were allowed to receive $10,000 in income tax free.  Your refund should reflect that as you will have most probably "overpaid" into the IRS.  

Hope that helps.

Answer 2

How much of the tax credit you recieve depends largly on how much money you make a year.  Not everyone qualifies for the tax credit.  There is a good chance you wont get all the money back the first year, the credit can be carried over for five years.  I'm linking a site that explains this.

Answer 3

The amount of the return can't be more than your tax liability (or something like that), so it may not all appear on one year's returns.  It may be over 2 or 3 years.

Answer 4

I would seriously recommend that you go to an accountant.  It is worth a couple hundred bucks to make sure it is done correctly.

You will need receipts for everything related to the adoption.

Answer 5

When you file your taxes. Let the person know that you adopted a child. You will be given a 10,000.00 tax credit and then it is added to your taxes and then whatever is left is what you will get. This is what we had to do when we filed for taxes two years ago.

Answer 6

i work in finances and I recommend that you spend a few extra bucks also to go to an accountant. You will need receipts and other documents pretaining to the adoption for you to get the tax credit.

Answer 7

The tax credit was intended to reduce the number of kids in foster care, not to help you fund your private adoption

I guess if there's a loophole, folks will always cash-in

Answer 8

Just how many people would adopt if their wasn't no tax credit, I really don't think they need to get one much lest money from the state to raise then, If they really wanted a child then they should have to do like birth parents (do it by your self and don't worry about tax credits) I  know a woman that foster children and adopted on ( she no-longer fosters anyway she gets a check every month for this adopted child. I never got a check for having my children and raising them.

Answer 9

"Unfortunately my wife are unable to have kids, so this is our only avenue."

Yet another excited, 'loving' prospective adoptive parent...yes, you'll get your rebate. Don't worry.