Adoption Credit Carryforward Incorrect?

[CRLBJT2021]

We adopted two children w/ special needs in 2021. I haven't had any issues filing in 2021 or 2022. This year, TT is saying that my carryforward to 2024 is $17,500. For context, the full amount in 2021 was $14,440 per child (so, $28,880 for us). The carryforwards were roughly $19k into 2022 and $9k into 2023. It seems very strange to me that my carryforward into 2024 is $17.5k. It makes me think I'm doing something incorrectly or TT has a bug. I spoke with support for quite some time and he basically said he didn't think there was a problem and to trust the software.  I don't want to turn around and have a liability and owe the IRS because I filed the credit incorrectly.

[MarilynG1]

If you entered your Adoption Credit Carryover for 2023 as 9K, and no new expenses were added in 2023, how much was applied to your tax due this year?   If none was applied, the 9K would carryover to 2024.  If an amount was used, then the balance would carry over. 

You can see the calculations on Form 8839.  The credit shows on Schedule 3, Line 6c, then flows to Form 1040, Line 20.  If you're using TurboTax Desktop, go to FORMS in the upper right corner to view these forms.

In TurboTax Online, you will need to pay for your return and save a PDF copy of it to review Form 8839. However, you can go to Tax Tools > Tools > View Tax Summary (from the pop-up).  Then back at the left-side menu, choose 'Preview My 1040'.

The Adoption Carryforward amount to 2024 is not included in your Efiled tax return.  If it is incorrect, you can enter the correct amount in that section in 2024. 

[CRLBJT2021]

Right - but it's saying I have 17.5k carrying to next year. So even if none applied this year, how did I go from 9k to 17.5k? I think the end result on my return this year would be the same. But I am still concerned about accuracy somewhere due to the fact that TT is saying that somehow my carryforward doubled.

Thanks for your reply.

[DMarkM1]

Recheck your entries on the carryover page in the Adoption Credit topic.  There should only be an entry in the 2021 box for 9K since that is what is unused from that adoption year.  There would not be a 2022 entry since no adoption expenses were incurred during that year.  

Then look at your form 8839 either in "Forms Mode" for desktop or print/download for online.  Line 12 should be zero, lines 13 and 14 should each show the 9K carryover. Line 15 will show your credit limit.  Line 16 will be the lower of 15 or 14.  If 15 is lower then the difference is carryover to 2024. 

In 2024 again you only enter that carryover amount into the 2021 tax year box as no adoption expenses were added in 2022 or 2023.   

@CRLBJT2021