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OK I have been reading about the tax credit and as soon as I think I understand it, I read something else that confuses me!
Let me ask you this, when the gov decides if you get any of the 10K tax credit does it go by the total amount you have paid in federal taxes OR the total amount it shows for Federal Income Withholding??? This is what has me confused.
Say you have a $30,000 a year income. Your federal withholding say is around 3,000 but it shows on your last paycheck you have paid a total of around 5,000 in taxes. What does this tax credit go by? Withholding or Total? So would this mean you would get back $5,000?
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tobeafamily has it right. The number from the tax tables is the amount that will be reduced (perhaps all the way to 0) because of the adoption tax credit. The number on your paycheck doesn't matter, because you could have either overpaid or underpaid throughout the year.
mjoseph, in your example - the tax table says the IRS wants $3,000 and the paycheck says you've paid $5,000 - you'd be getting back the $2,000 difference anyway. The adoption tax credit will then be applied to the $3,000.