2023 Adoption Tax Credit Explained

[@asiajones1164]

Can you provide an example of receiving the full adoption tax credit with no expenses for an eligible special needs adoption that is finalized?

[@4aheartChrist]

I'd be interested in this too!

[@hashbrown9791]

And explain how carry forward works in this specific circumstance

[@lumbo999]

Did you get any information on this

[@a181240]

Very interested in this as well

[@AracelyCantalicio]

Thank you 😊

[@AskaCPA]

Welcome!

[@natalies7687]

If a grandmother ends up adopting her grandson because the state deemed her daughter and spouse as unfit to be parents can the grandmother be eligible to claim the adoption credit? She did not pay the adoption fee, the state did.

[@financialservicesprofessio7377]

I have a question. The standard numerated allowable expenses did not include the expenses for supporting the child (overseas) while the adoption drag on. Nor did the exclusion expenses included financial support. The child was an orphan. According to an AI, although this was not specifically listed, it can still qualify as an expense. What do you think?

[@KnightSmoke20]

Does the special needs adoption credit phase out based on income?

[@AskaCPA]

Yes, for the 2024 tax year, these thresholds have been adjusted for inflation. The phase-out begins at a MAGI of $252,150 and is fully phased out at $292,150 or more.

[@marcoflores1764]

Just to be clear, are you saying we have to amend previous tax returns on a 1040X for previous years expenses of a finalized adoption?