[hilzim]

Is the tax credit really only for people making enough to pay taxes? My husband makes a moderate salary and we have three children so we usually get money back. Does this mean that we do not qualify at all for the $10,000 tax credit. It says that the tax credit offsets your tax liability so that means if we don't owe, then we don't get it? How fair would that be? If we adopt from Ethiopia instead of in WA state will we totally be stuck with the bill and not get to receive anything back? Can anyone tell us if this is true or how it works?

Thanks!

[HappyMomAnna]

The adoption Tax credit is a credit in the amount of tax you would have to pay....If you do not pay taxes there is nothing to give you back...

Just because your family recieves a refund does not mean you do not have a tax liability...It only means that during the year more money was taken then you owed at the end of the year. Instead of getting a refund you might get all the tax money you paid back...

Also the Tax credit can be rolled over for five years so you can use part of it each year.

My understanding is that all adoption qualify for the tax credit the difference is that international or infant adoption require you to show costs and keep records. The ONLY children who receive the credit without proof is are SPECIAL NEEDS children not just state children.

I am not sure why you feel it is NOT fair if you do not pay the taxes in the first place how can it not be fair... A Tax credit is simply the return of the money you earned and paid in taxes it is not additional money.