Affording Adoption

Outline for the Adoption Tax Credit for 2022 Taxes

• What is the Adoption Tax Credit for adoption being claimed on 2022 federal taxes? $14,890 per child
• It is a non-refundable tax credit. How to advocate for refundability?
• What is a “credit” and how does it differ from a deduction or some other form of tax savings?
• If you get a tax refund every year, how would you use the Adoption Tax Credit?
• If you don’t have any federal tax liability, should you still apply the credit to your federal income taxes?
• What type of adoptions are included or excluded? Stepparent adoption? Embryo adoption? Same-sex partner second parent adoption? Unmarried heterosexual second parent adoption? Surrogacy?
• Can you get credit for each adoption you complete even if completed in the same year? What about adopting siblings at the same time?
• What is a Qualified Adoption Expense for purposes of the Adoption Tax Credit 2022?
• When can you claim the Adoption Tax Credit?
o Domestic private adoption
o International Adoption
o Re-adoption in the US for international adoption
o Foster Care Adoption
• How does the Adoption Tax Credit work with kinship adoptions? What if the child never was involved with the foster care?
• Special Needs Adoption: How does the Adoption Tax Credit differ for adoptions from foster care? What does the IRS accept as proof of “special needs”? Subsidy agreement.
• $0 subsidy agreement. (Deferred subsidy agreement, future need subsidy agreement)
• Special needs child for international adoption?
• Can you reclaim your expenses for an attempted adoption that did not result in a placement? How?
• What income level (Modified Adjusted Gross Income) is excluded from claiming the Adoption Tax Credit in 2022?
• How long can the credit be carried over?
• Are you able to amend previous year tax return to claim adoption tax credit? Is adoption tax credit something you can amend for, and if so, how do you amend and how many years back?
• Will the Adoption Tax Credit offset self-employment tax?
• How does the Secure Act impact claiming the Adoption Tax Credit for 2022 taxes.
• What should you do if the child’s Social Security Number is not available when you file.
• Should you use an Adoption Taxpayer Identification Number (ATIN #) if you don’t have the child’s social security number?
• How does the Adoption Tax Credit work in conjunction with employee adoption benefits? For special needs adoption?
• Qualified Birth or Adoption Distribution from Qualified Retirement Plan without penalty. Under Secure Act.
• If you adopt, can you still get the Child Tax Credit?
• What do you need in order to get the Child Tax Credit for your adopted child? Social Security # for the child.
• Do you need to send to the IRS any documentation for the Adoption Tax Credit when you file your taxes? What type of documentation should you keep in your records?
• How to find a tax specialist knowledgeable on the Adoption Tax Credit?