Adoption Credit
 |
Definition of 'Adoption Credit'A federal tax credit that may be claimed by federal taxpayers who incur qualifying expenses, such as adoption fees, court costs, attorney fees and travel expenses, to adopt an eligible child. To claim the credit, the taxpayer must submit adoption documents and form 8839, Qualified Adoption Expenses, along with his or her federal tax return. Form 8839 is used to calculate the amount of the credit and also asks for the child's first and last name, birth year, whether the child has special needs, whether the child is foreign born and if the child is disabled. |
 |
Investopedia explains 'Adoption Credit'In some years, the tax credit has been refundable, meaning that it could be claimed even if the credit exceeded the taxpayer's tax liability. In other years, the tax credit has been nonrefundable. If the taxpayer's employer also provides adoption assistance payments, these will reduce the amount of the credit. |
Related Definitions
Articles Of Interest
-
How To Save More For Your Retirement
The Economic Growth and Tax Relief Reconciliation Act of 2001 made it easier to prepare for the future. Will you be ready? -
Give Your Taxes Some Credit
A few tax credits can greatly increase the amount of money you get back on your return. -
Changes In Tax Legislation And Regulation
Keeping on top of these amendments can help you avoid penalties and take advantage of benefits. -
New Tax Rules Target The Top Tax Bracket
The American Taxpayer Relief Act brings about new tax rules for the wealthy that people such as Warren Buffett have been calling for over the last few years. -
IRS Special Enrollment Examination (SEE) Study Guide
The enrolled agent status is the highest credential awarded by the IRS. -
How To Deduct Your Job Search Expenses
With approximately 12 million Americans out of a job right now, many people are spending significant dollars to be noticed by potential employers. Fortunately, some of these job-search costs ... -
8 Little-Known Tax Deductions And Credits
These little-known tax deductions can lead you to finding your own unique expenses that you didn't know you could claim. -
Common Tax Mistakes To Avoid
Find out what mistakes people often make on their returns, and how to avoid them on yours. -
Should Married Taxpayers File Together?
The earned income credit is one tax incentive married couples filing a joint tax return can take advantage of. Is it a good idea? -
Are You Really Eligible For The Earned Income Tax Credit?
The amount of your earned income credit (EIC) is dependent upon how big your family is.
Free Annual Reports