Adoption Tax Credit

Tax RefundThe deal that lawmakers agreed to at the beginning of 2013 to help avert the dreadful fiscal cliff, helped to restore the adoption tax credit, ultimately making it permanent.

Started in 1997 and into 2009, the adoption tax credit was nonrefundable. This essentially meant that the amounts could not apply to existing current liabilities, but it was able to carry forward. In 2010 and 2011, however, this credit was refundable. In 2012 and into the future, this credit will continue to be nonrefundable and the maximum amount permitted per child is $12,650. In 2013, this amount will increase to $13,360 per child. (more…)

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