I am at a bit of a loss..... I have $10K of adoption credit carry forward from 2019. However, Turbo Tax is saying I do not qualify for this under the Adoption Credit area and that the amount would be carried forward again into 2021. However, I have tax amounts due that would offset this. Is this a mistake in Turbo Tax logic??
The adoption tax benefits provide an incentive for individuals or families to adopt an eligible child. The 2020 maximum dollar amount per eligible child is $14,300. If your expenses were spread over multiple years, you might be able to spread the credit over multiple tax returns (see Who Qualifies and What Adoption Expenses Qualify below).
Included in the tax benefits is a nonrefundable tax credit. This is a dollar-for-dollar reduction in the amount of federal taxes owed (tax liability) for the year.
You won't get a refund if the tax credit is more than your total tax owed for the year. However:
To claim the adoption tax credit in TurboTax:
An eligible child is:
Regarding the adoption tax credit, keep in mind:
Verify that you have a tax liability in 2020. Preview your Form 1040 and look on line #24. If that is a positive amount, then make sure you have the children listed as ''adopted'' in the dependent information section. And finally go through the adoption credit screen again to ensure you have entered all of the information.