Those who finalized their adoption in 2010 or 2011 but never claimed the adoption tax credit…it’s not too late! According to a New Jersey Today article, there is still time to file a tax amendment to receive the adoption tax credit.
According to the article, those interested would need to file form 1040x to amend their “Individual Income Tax Return” as well as the Adoption Tax Credit form, 8839. Adoption STAR recommends that you speak with a professional adoption tax expert before filling out any forms.
According to the article, there was a recent increase in the maximum return allowable for 2010 and 2011, and those receiving a return now may be eligible for up to $13,360 in refundable credits.
The 2012 Adoption Tax Credit did not under-go these changes, and the maximum credit will be $12,650 for those that finalize their adoption in 2012. The 2012 Adoption Tax Credit is not refundable.
As of now 2012 is the last year that all adoptions will be eligible for the adoption tax credit. In 2013, only special-needs adoptions will be eligible, and the tax credit will cease to exist after that. There is still time to save this worthwhile tax credit, which makes adoption affordable for many families. To do so, please read this blog post on contacting your local representatives and asking them to save the adoption tax credit.
To read the full New Jersey Today article, please click here.