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DH and I paid in $300 in fed taxes in 2012 and got a refund of $600. Is the ATC going to do us any good? What can I do to claim it? Between 4 kids, mortgage interest, student loan interest, 401k, charitable giving, ect, it seems we have no tax liability to the fed. State is another matter, but the ATC doesn't matter for state taxes - does it? Thanks for any help!
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If you don't have any tax liability, then the federal adoption tax credit isn't going to get you any money back. Because it's a non-refundble tax credit. Blah. But do go ahead and fill out the forms anyway, and submit them with your taxes. Because you have this year, and five more years, to use the credit. You may be able to use it some time in those upcoming years, but you can only use it then if all the preceeding years' forms were filled out too. So keep doing it in the hopes it will help in the future.
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You're probably not going to get all the credit in 1 year, but you can carry over the unused portion to future years.The tax credit can lower your liability to 0, so for 2012 you would have gotten back 900 instead of 600 and could apply the remaining tax credit the next year, and so on as long as you haven't used it all. It won't ever give you the full 12,500 but you should be able to take your tax liability for a couple of years. I think DianeS is right that you have 5 years.