This article, originally published in the Adoptalk 2016 fall issue, was updated for the 2020 tax year. Adoptalk is a benefit of NACAC membership. by NACAC Staff Each year, NACAC handles hundreds of inquiries about the adoption tax credit. Through these interactions, we’ve learned that prospective adopters and adoptive parents are often confused about the credit. Some… Read more
Since years 2012 through 2016 are now closed tax years, you cannot receive any refund you were due for any of these years. BUT you can still amend your 2012 through 2016 taxes and claim the credit in order to carry any remaining benefit of the credit forward to 2017 and later open tax years… Read more
Claiming the Federal Adoption Tax Credit for 2020 Updated February 2020 For adoptions finalized in 2020, there is a federal adoption tax credit of up to $14,300 per child. The 2020 adoption tax credit is NOT refundable, which means taxpayers can only use the credit if they have federal income tax liability (see below). The… Read more
Have questions about how to claim the adoption tax credit? NACAC’s adoption tax credit expert, Josh Kroll, presents a webinar on the federal adoption tax credit outlining the steps to file. The focus is on filing for the 2020 tax year, but also covers applying for the credit for adoptions as far back as 2017… Read more
Claiming the Federal Adoption Tax Credit for 2019 Updated January 2019 For adoptions finalized in 2019, there is a federal adoption tax credit of up to $14,080 per child. The 2019 adoption tax credit is NOT refundable, which means taxpayers can only use the credit if they have federal income tax liability (see below). The… Read more
Claiming the Federal Adoption Tax Credit for 2018 Updated March 2019 For more about the adoption tax credit, see our main page on the subject and our FAQS If you finalized your adoption in a year other than 2018, please use the links in the menu to go to the page of the year that… Read more
November 9, 2017 Good news! The House Ways and Means Committee has reversed the proposed elimination of the adoption tax credit! Thank you for joining us to fight for the adoption tax credit and for vulnerable children and families. Below is the statement of the Adoption Tax Credit Working Group, of which NACAC is a… Read more
As many of you know, the adoption tax credit (ATC) is vulnerable and may be eliminated as part of tax reform – and we need your help to save it! Join us as we work to keep pressure on Congress to save the credit that makes it possible for all families to adopt. Help us… Read more
Below are links to the IRS forms (https://www.irs.gov/forms-instructions) and instructions you will need to claim the adoption tax credit. To claim the adoption credit you must complete Form 8839 for the year you finalized the adoption. If you use a tax preparer or software, they should complete the form for you. Form 8839 Form 8839… Read more
NACAC—as part of the Adoption Tax Credit Working Group—is working to save the adoption tax credit and to ask Congress to make it refundable. We ask you to join us in this advocacy movement! What You Should Know There are two important things to know: In current discussions about tax reform, some people are suggesting… Read more
Adoptive parents often ask whether adoption assistance (adoption subsidy) payments are taxable. Many also wonder about claiming their child as a dependent and using the child tax credit. NACAC reviewed related IRS publications, and below we offer our interpretation of these issues. Please know that NACAC is not a tax expert, and these opinions should… Read more
Updated January 2021 Can I receive the credit if I adopted a child from another country? Yes, once the adoption is legally finalized, either in your child’s home country or in the US, you can claim your qualified adoption expenses, up to the maximum. Is the adoption tax credit for all adoptions or just special… Read more
Claiming the Federal Adoption Tax Credit for 2017 Updated March 2021 IMPORTANT: If you are amending your 2017 taxes, most families have until April 15, 2021 to amend their 2017 federal returns to receive any additional refund due to them for 2017. For more about the adoption tax credit, see our main page on the… Read more
Claiming the Federal Adoption Tax Credit for Adoptions Finalized from 2012 to 2020 Updated February 2020 Who Is Eligible for the Adoption Tax Credit? You can claim the federal adoption tax credit if: You adopted a child other than a stepchild. You can claim the credit if you adopted from foster care, adopted internationally, adopted… Read more