Adoption Tax Credit
Hi everyone. I want to make sure that I am understanding the adoption tax credit correctly before I finalize my taxes for this year. I understand that it is non-refundable but am trying to confirm why we don't qualify. Our MAGI is < $299,189.
Our adoption started and was finalized in 2025. We did receive employer reimbursement. We paid $6500 over what was reimbursed. The message that I receive after providing our information is: "It looks like you don't qualify this year." I am curious if it is simply because we overpaid for tax year 2025 and are receiving a refund.
If that is the case, can we pay less in 2026 and use it to offset tax liability for this year? Since I don't know why we don't qualify, I am hesitant to change our withholding with the expectation that we can utilize the tax credit next year.
Any thoughts would be greatly appreciated. Thank you!
