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Here's what we've been told.....
It is my understanding that the tax credit is only for expenses which a person actually incurred for the adoption process. Also, (and this too came from our adoption attorney), the credit cannot be taken until the child is adopted. In other words, you can't 'get credit' for more money than you actually spent. (Our adoption was under $10,000, so we can only claim the amount spent on the adoption.)
While I find this as confusing as anyone else, I would 'bet money' on the finalization situation. I know that we could not obtain a partial reimbursement from the state (a benefit from working for the state), until the adoption was finalized. And from everything else we have encountered (and that's adopting six times), it seems NOTHING is eligible for reimbursement until finalization takes place.
And the question about the 'tax credit money being more than the tax you owe', has me stumped too. If you should already receive the amount to be refunded to you, I don't see how a person can receive more?
For us, we don't 'do our own taxes' and I'm hoping SOMEONE in the professional tax world, will know the ends and outs of this!
Linny
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