Things to know about claiming the credit:
- To claim the adoption credit, taxpayers complete Form 8839, Qualified
- Adoption Expenses and attach it to their tax return. They use this form to figure how much credit they can claim.
- There are income limits that affect the amount of the credit.
- The adoption tax credit is non-refundable. It will reduce a tax bill but won’t result in a refund, even when the amount of credit is greater than the tax bill. However, a taxpayer can carry their leftover credit forward and apply it to future tax returns for up to five years.
