|
You can take the entire adoption tax credit in the year your adoption was final. (because it was an international adoption.) You *should* be eligible for the entire tax credit on your '05 tax return.
Two caveats: if your income exceeds certain levels, your credit will be reduced. That's one reason you might be getting less. If you only had $5,000 in tax liability for '05, that's all you can get back. In both cases you can still carry forward the credit for up to 5-years until you use it all.
Be sure your accountant isn't confusing both domestic and international adoption. In domestic, you get credit for expenses incurred in the year you spent them, in international, you can only get credit (in the full amount) in the year the adoption was final, whether you paid for it all that year or not.
Kelley
__________________
SUPPORT GLBT ADOPTIVE PARENTS
Mommy to a spectacular little boy from Guatemala
DOB: 10/03
referral: 1/04
home: 5/04
and baby boy #2
3/23/06 I-600A to USCIS (no homestudy)
3/31/06 received fingerprint appt from USCIS
4/5/06 fingerprints
"The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man."
--George Bernard Shaw
|