Why am I seeing a refund due to claiming an adoption credit?

[jghopfer]

We adopted in 2020 and are seeing a large refund apparently due to the Adoption Credit.  My understanding is that the credit reduces tax liability, not gets me a refund.  Is there some change to the tax law I don't know about?

[LenaH]

 No. The adoption credit is nonrefundable, which means it's limited to your tax liability for the year. Any credit in excess of your tax liability may be carried forward for up to five years. However, if your tax liability is zero due to the adoption credit, you may see an increase in refund because you are getting a refund of taxes paid and/or other refundable credits that you may be receiving. 

In order to see where your refund is coming from, please follow these instructions in TurboTax to preview your 1040:

1. Open your return. 
2. Click on Tax Tools.
3. Click on Tools.
4. Click on View Tax Summary.
5. Click on Preview my 1040.  

Topic No. 607 Adoption Credit and Adoption Assistance Programs

[TaxTim1]

I think @LenaH. being the expert that she is, is on to something.  I suspect that the adoption credit is reducing your tax liability to zero & that you may be receiving another credit that is refundable, thereby increasing your refund.

Hope this helps.