[nhook]

I am doing my taxes and this will be my 2nd year for adoption tax credit. On the first page of 8839, it states that the credit is 10,960 and last year it was 10,630. Which one do I use if mine was final in 2006 and which line does it go on? Thanks.

[sak9645]

If the adoption was final in 2006, you use the 2006 credit. The 2006 credit was $10,960. It goes on line 2 of form 8839, which you file with your 1040.

Sharon

[pequele]

Originally Posted by nhook

I am doing my taxes and this will be my 2nd year for adoption tax credit. On the first page of 8839, it states that the credit is 10,960 and last year it was 10,630. Which one do I use if mine was final in 2006 and which line does it go on? Thanks.

How was your adoption finalized in 2006 but this is the 2nd year you take the credit? I thought you could not take it til the year it was final? Wouldn't that make this (tax filing for 2006) the first year you can take the credit?

[nhook]

Sorry, typo. It was finalized in 2005. When you print out the 8839, it has 10,960 already preprinted. Do you cross it out or put the 10,360 on line 3??

[momm2be]

Can you take the credit more than once?

[Ktates]

You have 5 years I believe to use up the credit - we did not use it in full last year so we have some to carry over (because we owed very little in taxes)....

[keithww]

You will need to use the amount that you originally had back in 2005, just because you didn't use it all, does not mean the amount goes up.

[sak9645]

Agree with Keith. I thought you were taking the credit in 2006 for the first time.

You take the credit in the year your adoption is final. For Russia, since both parents (or a person adopting as a single) have to see the child before the issuance of a final decree of adoption, the child's adoption is considered final in the year he/she comes home. You use the tax credit amount for that year.

IF you do not use the entire credit in that year, you will have some unused credit that you can apply the following year. But you can use only the amount of credit that was unused under the previous year's rules. The amount of unused credit does NOT increase the next year.

Sharon