kay_may08
New Member

Can we claim the full adoption tax credit this year?

We adopted a special needs child through NM state this year. Turbotax is only letting me get partial of the 13,000. It's giving me 3,700 this year. It doesn't give me the option to claim the whole refund this year, it says 9,000 will be carried over. How can we change that?


JohnW15
Intuit Alumni

Deductions & credits

Under current tax law, you can’t change the credit you’re receiving, or the carryover.

The adoption credit is non-refundable -- which means that it can lower or eliminate any income tax you owe, but won’t produce a refund due to the credit.

However, as you’ve seen, if the entire credit isn’t used because all of your income tax was eliminated, the remaining amount can be carried forward for up to five years.  In that event, it can continue to reduce or eliminate your taxes in the future.

At one point in time, this credit was refundable, but that provision expired several years ago.

For additional information, see New Addition: Adoption Tax Credits

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Chris3k2
New Member

Deductions & credits

I am in the state of SC. my situation is basically the same. I understand the answer that was given but would like to know if the state return has to be filed by mail with the special needs certificate or can the state be e-filed?
JohnW15
Intuit Alumni

Deductions & credits

Hi, Chris.  South Carolina requires that you “[a]ttach a copy of the letter you received at the time of adoption from the SC Department of Social Services which certified the person as a "special needs child"” (see <a rel="nofollow" target="_blank" href="https://dor.sc.gov/forms-site/Forms/SC1040Instr_2017.pdf">https://dor.sc.gov/forms-site/Forms/SC1040...>. )  Unfortunately, TurboTax can’t include this document in an electronically-filed tax return, so to conform to the instructions, you’d need to mail your return.
kay_may08
New Member

Deductions & credits

Hello John, I efiled our tax returns. New Mexico is still pending, do you know if NM has the same requirement that I need to attach the SNC? If so, how do I fix that?
JohnW15
Intuit Alumni

Deductions & credits

Hi, Kay.  If you’ve claimed the Special Needs Adopted Child Tax Credit on a prior year return, you don’t need to attach anything to your return, either paper- or electronically-filed.  However, if this is your first time claiming the credit, you will need to attach a copy of the certificate issued by New Mexico Human Services Department or the licensed child placement agency for each child you adopted that year, and TurboTax cannot process that attachment, so you would need to file your return on paper to include that documentation.  That said… If your electronically-filed New Mexico return that included Form PIT-RC, New Mexcio Rebate and Credit Schedule, was accepted without the documentation, just keep the documentation in your personal files in case any questions arise.
JohnW15
Intuit Alumni

Deductions & credits

For information on other states, see the page below.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/3302452">https://ttlc.intuit.com/replies/3302452</a>
kacy
New Member

Deductions & credits

hi, we adopted a child in WV through foster care this year after his parents rights were terminated.  I understand the federal side of the credit, but was wondering about WV. Will i be able to e-file that or do i have to mail it in with the adoption paperwork? 

kacy
New Member

Deductions & credits

hi, we adopted a child in WV through foster care this year after his parents rights were terminated.  I understand the federal side of the credit, but was wondering about WV. Will i be able to e-file that or do i have to mail it in with the adoption paperwork?