Adoption Update

The most up-to-date adoption news

A Correct Understanding Of The Adoption Tax Credit

Okay, I have to apologize for my previous posts concerning the adoption tax credit and how it actually works. I was incorrect when I stated that you can continue to claim the tax credit until you receive ALL your money back. For those adoptions that cost more than $12,150, my previously posted incorrect explanation certainly pertains to you.  Here is how it actually works.

Example: What if you have expenses of over $12,150 for the adoption yet owe less than $12,150 in federal income taxes?

The credit operates by allowing you to subtract credit amounts or adoption expenses from your otherwise owed tax bill, but if these credits bring your taxes owed down to zero and you still have credit remaining, the left over amount can be applied to up to 5 future tax years or until it is all used. So, basically the maximum amount you will ever receive is $12, 150 (unless the adoption tax credit is re-enstated and the amount is increased). If you owe no taxes than of course you will receive the full amount from the IRS up to $12, 150.

Again, I apologize for my incorrect interpretation of the adoption credit in my previous posts. I have deleted the posts that have incorrect information. Like I always say, I am not a professional so please always do your own research as well!

March 21, 2010 - Posted by | Uncategorized | , ,


  1. I had heard on the news today that an adoption tax credit was in the amendments to the health care bill being considered. Does anyone have any further information on this? I did not hear any specifics.

    Comment by Craig Lenz | March 22, 2010 | Reply

    • This is the first I have heard of this and I do not even understand exactly what that means. I’ll respond if I find anything of value.

      Comment by adoptionupdate | March 22, 2010 | Reply

    • Craig, I was able to find out some information regarding your questions. Perhaps you already figured it out yourself, if not, I posted a new post today that helps explain the credit and where it stands concerning the health care bill.

      Comment by adoptionupdate | March 25, 2010 | Reply

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