MayaD
Expert Alumni

Deductions & credits

Yes, that's correct. The Adoption credit is a nonrefundable tax credit. This is a dollar-for-dollar reduction in the amount of federal taxes owed (tax liability) for the year. You won't get a refund if the tax credit is more than your total tax owed for the year. However, any credit in excess of your tax liability may be carried forward for up to five years. 

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