Adoption Tax Credit Information

With tax filing deadlines quickly approaching, we wanted to share some important adoption tax credit information.

37587-eightDuring the winter of 2015, the North American Council on Adoptable Children’s (NACAC) Assistant Director Mary Boo wrote an excellent article entitled “Take Care When Talking about the Adoption Tax Credit.” The piece was primarily designed for use by adoption professionals that work with adoptive parents (or prospective adoptive parents), but we wanted to share it with anyone and everyone who may be interested in learning more about various aspects of the adoption tax credit.

As the article notes, “the deadline is fast approaching for anyone who adopted in 2011 and who hasn’t yet claimed the adoption tax credit. The credit was refundable in 2011, so even those with no or lower incomes could benefit. The deadline for filing is April 15, 2015. After this date, unless the taxpayers filed for an extension when they did their 2011 taxes, any possibility of benefitting for 2011 adoptions will be lost.”

The article also does a really nice job of addressing commonly confused aspects of the tax credit, including:

  • When people describe the tax credit as being not refundable any longer, what does that mean?
  • What does “special needs” mean in relation to the tax credit?
  • How does the credit pertain to non-finalized adoptions?

You can read the article in its entirety here: Take Care When Talking about the Adoption Tax Credit