Important Tax Credit Information for Your 2014 Adoption

‘Tis the season, right? Not the holidays, but the tax man. If you completed an adoption (other than a relative adoption) in year 2014, then it’s time to collect on the Adoption Tax Credit. As you

‘Tis the season, right? Not the holidays, but the tax man. If you completed an adoption (other than a relative adoption) in year 2014, then it’s time to collect on the Adoption Tax Credit. As you should know by now, that’s a huge boost so long as you pay taxes in (if you don’t pay any taxes, then you won’t get the credit because it’s not “refundable”). For special needs adoptions, taxpayers automatically receive the full $13,190 credit per child; for private adoptions, you get reimbursed for eligible expenses that you paid, up to the $13,190 amount.

But how do you get the credit?

Of course you need to include it in your 2014 tax filing. If we did your adoption in 2014, then you should have received an Affidavit of Expenses. We suggest submitting this court document with your taxes to help represent and prove your expenses. Then, you need the IRS form. We have it for you in a link here: CLICK HERE to view the IRS form. And the IRS gives their own instructions on completing the tax document and getting it submitted HERE (CLICK).

All taxpayers use Form 8839 to claim the adoption credit. Note that the carry-forward credit worksheet for line 16, which identifies unused credits that taxpayers may carry forward to 2015, has been modified to reflect that there are now 3 years (2012-2014) for which a taxpayer might have carry-forward amounts.

It’s always good to have a person you rely upon as your tax pro. They should be able to help you in putting these materials together. And remember that if you used our firm for your adoption, and you need any documentation or information about your adoption that we can provide, we’re always here to help.