2010 Adoption Tax Credit "Knowledge Share"

Okay all, I have been researching the Adoption Tax credit law changes since we tried to file our taxes on January 17 and were told we could not, that we had to wait for the form. Hopefully what I've learned will help all of you who are having problems understanding the changes. If you know additional things that are specific to how you adopted, please respond and share. I know there are many people here too afraid to even speak of the adoption tax credit for fear of being accused of only adopting for money...though I've not really seen that type of accusing here. Okay, here it goes: 1. Can I e-file? NO. The adoption tax credit MUST be filed by PAPER FILING this year due to the changes in the laws regarding it. 2. What will I need? All persons claiming the adoption tax credit will need to send in copies of their adoption decree (you can send in a redacted copy for security purposes, but you MUST have one that is non-redacted should the IRS request it). You must also have the typical receipts, etc for claiming the credit. If you did not have to show receipts, for a special needs adoption, you will need to send in the state determination of special needs (in many cases, this is a copy of your adoption assistance agreement). 3. How many credits can I claim? You can claim one credit per adoption. If you have 3 children, you claim 3 credits. 4. What if I have no tax liability? For the years 2010 and 2011, the adoption tax credit is a refundable credit. Even if you have no tax liability, you are entitled to receive the full credit (or remaining credit if you have carried credits forward from the prior tax year) in the form of a refund. So, if you are already getting a refund, you will still get the adoption tax credit ON TOP of your refund. 5. My software is stating that I am getting more money back than I expected. If you have one child, you should not be receiving more than the one credit, or whatever was carried forward from last year. If your software is telling you to input the carry forward amounts from prior years, DO NOT put in any amount except for the amount you've carried forward from 2009! I did this, and my software came up with a $61,000 refund amount. This is impossible as I did not adopt 2 new children each year. You can only get a credit for the carried forward amount, this is not something you can claim and cash out for each year. 6. Can I claim the adoption tax credit again next year? Only if you are claiming expenses in the 2011 tax year. Those of you that are carrying forward amounts from 2006-2010, you are "done" with your credit this year, unless you adopt again or have other qualifying expenses in 2011. Once cashed out, even if you have years left to carry forward, you cannot claim this credit again if you do not adopt again or have expenses again. Phew, what a mouthful...but I hope this helps anyone who may be wondering about some of the changes.