We adopted our special needs foster children 5 years ago. 2024 is our last year to claim adoption credit. Since we are a large family and our dedication is already set to 0, our tax liability is low. So we have most of the adoption credit left. Would opening a Roth IRA (in our or our child’s name) before 4/15/25 increase our tax liability to use the balance or our children’s adoption credit. Our children qualified for the income exclusion. We are trying to figure out the best way to finish using the balance of the adoption credit. The adoption was finalized in 2019.
