What Is a Tax Credit?
Subtract tax credits from the amount of tax you owe. There are two types of tax credits:
- A nonrefundable tax credit means you get a refund only up to the amount you owe.
- A refundable tax credit means you get a refund, even if it’s more than what you owe.
Information You’ll Need
You’re no longer required to attach the adoption documentation with your tax return; however, you must keep the documentation as part of your records.
- The year in which the expenses were paid.
- If the adoption is final, the year in which it became final.
- Age of the child.
- Whether the adoption was domestic, foreign, or for a child determined by a state to have special needs.
- Whether any adoption assistance was received and the year in which it was received.
Download IRS Form 8839, Qualified Adoption Expenses
The below link is an IRS interview that will help you determine if you’re eligible to claim a credit for expenses paid, or to exclude from income any assistance received for an adoption effort. If multiple children were adopted, repeat the interview as appropriate.