[OLIVIA1969]

I thought I had it figured out, but recently read something that confused me all over again. Here is a scenario. If someone who understands the credit can read my scenario and explain what would happen I would be very appreciative.


Example:

DH and I owe $9,000 in taxes for the year
We paid $10,000 in taxes for the year
The adoption tax credit is $12,000

Assume that we will qualify to the entire credit based on income and adoption expenses.

How will this work for us?

In this scenario, I think that we will only get the $9,000 back in addition to the $1,000 we would get back anyway right? If this is the case, can we get the other $3,000 back the next year?

I am so confused and the IRS site did nothing to help me.

Thanks!

[journeytolily]

That's exactly right. The credit carries over for up to 5 years, for others whose liability is much less. Ours, for example!

[sheababy]

Yes you are correct. You would get the $9000 credit plus the $1000 back. The $3000 will carry over to next year (you can carry over any remaining amount for 5 years).

[OLIVIA1969]

Thank you both so much. I am so glad to have that figured out.