You are correct. Because of the nonrefundable nature of the Adoption Credit, if you can't use the entire credit's value in the first year you claim it, you can carry forward any remaining amount for up to five years.
For example, if you claim the full credit in 2023 but only have $10,000 of tax liability, the $5,950 credit balance rolls into the following year.
When you view your completed return, you will see your actual credit amount on Schedule 3, Line 6, which is included in the amount on Line 20 on Form 1040.
The credit amount for this year's return is calculated on the Qualified Adoption Expenses Worksheet.
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