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Tis the tax season again ... so I am getting everything together but I remember that there is a letter I am suppose to request. Can someone tell me what that is in PA? I can't remember. Also I was using Turbo Tax and it is saying I can only get an adoption credit of $3000 for special needs is this correct? I was told that I could get the full credit because my girls are a special needs adoption.
If your children are considered special needs by your state (ie: they were adopted from foster care and you get some sort of subsidy for them) then you do indeed get the full credit for each child. You must answer that question correctly when it is asked for it to compute correctly. (And you answer it correctly for each child.)
If you answer it correctly, you will NOT be asked to input anything about expenses.
To actually file your taxes, you don't need any papers. You are allowed to efile with the adoption tax credit this year. But for your records and in case of an audit, you need to have a piece of paper that says your children are indeed considered "special needs". It should have those words on it. Your subsidy agreement might have those words on it, in which case that would be enough.
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DianeS
If your children are considered special needs by your state (ie: they were adopted from foster care and you get some sort of subsidy for them) then you do indeed get the full credit for each child. You must answer that question correctly when it is asked for it to compute correctly. (And you answer it correctly for each child.)
If you answer it correctly, you will NOT be asked to input anything about expenses.
To actually file your taxes, you don't need any papers. You are allowed to efile with the adoption tax credit this year. But for your records and in case of an audit, you need to have a piece of paper that says your children are indeed considered "special needs". It should have those words on it. Your subsidy agreement might have those words on it, in which case that would be enough.
This is what I am getting....
"Adoption Credit Carryforwards
Enter your unused adoption credit from 2012. This amount can be found on the credit carryforward worksheet from the Form 8839 instructions.
Credit Carryforward From Prior Year:"
Before this it is saying i qualify for the whole credit but nothing.