MonikaK1
Expert Alumni

Deductions & credits

Thank you for providing the file. I see now why you didn't get the credit.

 

You can only apply nonrefundable credits including the Adoption Credit against regular income tax. Your regular income tax was eliminated by your child tax credit and foreign tax credit. See Lines 16 through 22 of your Form 1040.

 

The only tax you had left to pay was self-employment tax. Self-employment tax can only be reduced by payments and refundable credits, the total of which appears on Line 33 of your Form 1040.

 

In order to use your adoption credits, you will need to have some income tax against which to apply them.

 

More details about the calculation appear in the Instructions for Form 8339.

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