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mmyag
New Member

What exactly does the "cash in pocket" adoption credit mean? It says as we have a credit of $22431. We have a carry over from 2015 and then adopted again in 2016

 
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MargaretL
Employee Tax Expert

What exactly does the "cash in pocket" adoption credit mean? It says as we have a credit of $22431. We have a carry over from 2015 and then adopted again in 2016

All it means is that your adoption credit of $22,431 will reduce your tax liability by that amount.  The credit is really nonrefundable... doesn't give you a dollar-for-dollar refund, but just reduces your income tax to zero.  And any excess is carried forward for up to 5 years. 

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