You do need to go through the adoption credit section and answer through the questions. There are a few reasons why the credit may be limited. I'll include
instructions for checking these situations below.
- You may have reduced your tax liability to zero, meaning you don't have enough taxes to use all
of the credit (you can't get cash back from the credit, but you can carry
it forward five years total).
- You may have exceeding the
income limitations. The credit phases out over Modified Adjusted Gross
Income (MAGI) of $201,920 to $241,920. MAGI is a tax return subtotal (AGI) based on tax income and certain deductions, which is
modified to add back passive income and certain deductions and credits.
Check your 'Total Tax' and 'Total Income' by looking
at the "Tax Summary." To do so, log in and follow the steps below:
- Click 'Take me to
my tax return'
- Then, click MY ACCOUNT in the top right and select TOOLS
- Under 'Other helpful links..' click VIEW TAX SUMMARY
You can read more
about the credit HERE.
If you still have questions, please provide more details after you
check the above situations.
