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Hello All!
Can anyone *please* share their NONREFUNDABLE adoption tax credit experience?
We adopted our sibling group this year through foster care so we are "eligible" for the full amount, but as it is nonrefundable, we don't have a clue as to how it will help us financially. I am now a stay at home mom to care for our toddlers and every extra bit helps.
Any info would be appreciated, thanks!
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When a tax credit is nonrefundable, that means that your tax liability can only be lowered to 0, not to a negative number. Generally speaking this means that you can only receive back what you pay in. For example, if you have only paid in $6000 in taxes, you can't receive $12,500. You'll get $6000 and roll the remaining credit to the next tax year.Additionally, for us, we had to show that we had spent that money in acceptable adoption expenses.I'm speaking from experience with domestic infant adoption - I don't have any experience with the special needs criteria that can operate differently than what I'm stating.
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