[Disneycrazed]

Are there others here who have not been able to take advantage of the adoption credit?
It would be nice if we could find a way to take advantage of this but so far no luck. we will see if in the next couple years we can get it.

[cbmstephanie]

We can't either. I try to tell myself that it's a good thing we are where we are, but I sure would like to have that credit one of these times.

[sferrick]

us too! Big bummer.

[w8ting4Thomas]

For us...that is a no too!!! I just completed taxes and for the 2nd year we can't
We are glad to be where we are, but we also have other things as payments that don't factor in (child support). Obviously paying it is not the issue, I just wish it was a factor. Then maybe we could take advantage.

[kzwief]

Is there an Income Cap on whether or not you get the Adoption Credit? If so, what is it for married couples?

[cbmstephanie]

There is an income cap. I don't really remember exactly so hopefully someone will chime in that has the regs in front of them, but I think it starts to phase out at 150K and complete caps out at 197K...that's just off the top of my head though, so it might not be exactly right.

[sak9645]

There is a point at which you get only partial credit, and then a point at which it phases out altogether. It phases out altogether at $214,730 this year.

Sharon

[Disneycrazed]

Well we don't make anywhere NEAR that... but still couldn't get it. I have the hardest time understanding it and sure hope our tax guy knows what he is doing.LOL

[myccg2004]

I'm confused?? Why can't you get the credit?

[adoptnky]

I'm not an accountant, nor do I play one on tv, but this is how I understand it.

It's a tax credit, not a tax break. You can only get the credit if you pay federal taxes.

So, you don't get it if a couple of things happen.

1) You make enough money that you aren't eligible (or phased out)

2) You have enough deductions to zero out your federal tax liability.

I think that's right, but someone correct me if I'm wrong.

Kim

[becky]

Kim is right.

You either make too much money. Or you have no federal tax liability due to other deductions/credits, etc.

[Disneycrazed]

Yes, you are right and saying it much better than our accountant.

[DFNY]

Yes, the amount in federal taxes is the issue, but I thought you had 3 years to take advantage of the credit...meaning, if the first year, you're only eligible for $3000, then you can carry over the rest to the next year and then a 3rd year. Again, no true understanding of this except what we saw in our tax filings.

Damaris

[becky]

Actually I think you can carry it forward for up to 5 years. But again, if you don't have any tax liability it really doesn't matter how long you can carry forward...you might never get to use the whole thing.

[AdoptAmiga]

Originally Posted by becky

Actually I think you can carry it forward for up to 5 years. But again, if you don't have any tax liability it really doesn't matter how long you can carry forward...you might never get to use the whole thing.

Yes, the total time is 6 years - the year of the final adoption, then one can carry it forward the next 5 years. For example, we finalized for our DD in 2003. The 2003 tax return was the main one, then carried over on the 2004, 2005, 2006, 2007 and now for the final time, 2008. And true, depending on your tax situation, some will never use it all, even within 6 years.

Also, one can use the credit as even amounts, like a PP said - $6000, $3000, $3000, $1000 for example. Again, all depending on your situation.