I started an adoption in 2019 and finalized it in 2020. I have nearly $7000 in adoption expenses, and I have entered them in. However, when I proceed, TurboTax says, "It turns out you don't qualify for this credit. ... For next year, you have a $6,996 carryover."
I think what it means to say is that I do not have any tax liability, so that the credit cannot be used this year. However, it does not say that clearly enough. It instead says that I do not qualify, but gives no explanation as to why. As far as I can tell from reading the literature, I do indeed qualify. At the same time, my Tax Summary says that my Total Tax is $0, which I believe means that I do not have any tax liability against which to apply the adoption credit. Is that correct?
Thanks!
