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Do I need to file for adoption tax credit if my tax liability is below zero?

 
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DanielV01
Expert Alumni

Do I need to file for adoption tax credit if my tax liability is below zero?

No, you don't have to, but you probably want to.  The adoption credit is a nonrefundable credit, which means that if your taxes are already zero, you will not receive additional credit for claiming it.  However, if not used, the adoption credit carries forward for 5 years until it is used or lost after 5 years.  Since the credit can be worth up to $13,810 per child (and the full amount is granted automatically if the adoption was for a special needs child), it will be worth your effort to claim the credit now, because it must be claimed in the year the adoption is finalized.

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3 Replies
DanielV01
Expert Alumni

Do I need to file for adoption tax credit if my tax liability is below zero?

No, you don't have to, but you probably want to.  The adoption credit is a nonrefundable credit, which means that if your taxes are already zero, you will not receive additional credit for claiming it.  However, if not used, the adoption credit carries forward for 5 years until it is used or lost after 5 years.  Since the credit can be worth up to $13,810 per child (and the full amount is granted automatically if the adoption was for a special needs child), it will be worth your effort to claim the credit now, because it must be claimed in the year the adoption is finalized.

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Do I need to file for adoption tax credit if my tax liability is below zero?

Am I able to then go back 2 years and file the adoption credit? If so, how?
DanielV01
Expert Alumni

Do I need to file for adoption tax credit if my tax liability is below zero?

Yes.  To do so you will need to file amended returns.  To get good instructions on this, I suggest you post an additional question so that you can receive step-by-step instructions.
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