[hjelder]

Sorry to be so bothersome, but I am wondering, do you get two tax credits when you adopt siblings? We want to adopt siblings, and it would certainly help offset the costs.
The lady at agency thought so, but isn't sure.



Thanks!

[AuntDonna]

Yes. However you can only get back each year the amount of taxes you have paid. You have up to 5 years to claim the total.

[mommytoEli]

i second aunt donna. we adopted sibs...and got 2 credits. however, since they are only good for 5 years, and we have many other write offs, it is most likely that we will not use all of the credit before it expires. but trust me...these few years with those credits was helpful.

[sak9645]

Yes, you get two credits as long as you don't double count any expenses when calculating your qualifying adoption expenses for each child. Remember that you must have qualifying adoption expenses for each child that are equal to or greater than the amount of the tax credit. This is usually not an issue for Guatemalan adoption, but it can be for some other adoptions.

Also, remember that the credit is not a "refund". No one is dumping $22,000 in your lap. You can get back, in a single year, only an amount equal to your "total tax liability". Your total tax liability refers to the amount of tax that you paid the IRS through your paychecks every week and the amount you still have left to pay on April 15 of the following year.

In all likelihood, your total tax liability in the first year is going to be under $22,000; thus, you will not be eligible to take the full credit for two children. However, you can carry over unused credit. In other words, if your total tax liability is $12,000 in the year your child comes home, you can claim only $12,000 of the credit that year. You can then carry over unused credit to the next year. If you have $12,000 in total tax liability that next year, you can use the remaining $10,000 of the credit to offset it.

In addition, remember that the tax credit begins to phase out at a certain income level, and eventually drops to zero. While most people will be able to take all of the credit, certain people with relatively high incomes may be able to take only partial credit or no credit, depending on their circumstances.

Sharon

Sharon