Comments on: How does the federal adoption tax credit work with international adoption? http://yournewpets.com/how-does-the-federal-adoption-tax-credit-work-with-international-adoption.html Tips and Tricks on New Pets Sat, 04 Sep 2010 22:39:05 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: JQT http://yournewpets.com/how-does-the-federal-adoption-tax-credit-work-with-international-adoption.html#comment-418 JQT Sun, 21 Mar 2010 20:30:19 +0000 #comment-418 For international adoption, you can only take the adoption credit if the adoption was finalized in 2006. The adoption credit is a non-refundable credit. This means the credit can reduce your tax liability down to $0. But if a tax payer don't owe any taxes, the adoption credit will not give the tax payer more money back. So if you are getting $500 refund because you overpay taxes, then you will get more money with adoption credit. If you are getting $500 because you are claiming Earned Income Credit, then adoption credit may not add to the amount of your refund. See instruction for form 8839 http://www.irs.gov/instructions/i8839/ch01.html#d0e22 Best wishes. For international adoption, you can only take the adoption credit if the adoption was finalized in 2006.

The adoption credit is a non-refundable credit. This means the credit can reduce your tax liability down to $0. But if a tax payer don't owe any taxes, the adoption credit will not give the tax payer more money back. So if you are getting $500 refund because you overpay taxes, then you will get more money with adoption credit. If you are getting $500 because you are claiming Earned Income Credit, then adoption credit may not add to the amount of your refund.

See instruction for form 8839 http://www.irs.gov/instructions/i8839/ch01.html#d0e22

Best wishes.

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