American adoption tax credit forms
Americans can receive a tax credit to cover adoption costs. There have been some changes to the adoption tax credit, specifically:
* Before the adoption tax credit helped pay for tax liabilities and adoption costs were subtracted from the family’s tax liability. Under the changes, even if an adoptive family does not owe any taxes, they will receive the adoption tax credit as a refund.
* The maximum adoption credit has been increased from US$12,150 to US$13,170 and will remain at the higher figure through 2012. In 2012 the tax credit is scheduled to decrease to US$5,000.
* If the adoption tax credit in previous years was more than owed, the excess amount can be carried over for five years. This means that past adoption tax credits can be refunded in 2010.
Below you will find the necessary forms.
Application: 2010 f8839
Creating a Family has included a section on adoption tax credit that is very informative. Visit their site for more information.