Do You Get an Adoption Credit Every Year?
Tax benefits for adoption include both a tax credit for qualified adoption expenses paid to adopt an eligible child and an exclusion from income for employer-provided adoption assistance. The credit is nonrefundable, which means it’s limited to your tax liability for the year.
Is the adoption credit carried forward to the next year?
Carrying Forward the Adoption Credit. Any adoption credit in the year 2012 or later that is in excess of your federal tax liability can be carried forward to the subsequent tax year. Excess adoption credits can be carried forward for up to five years is used up on a first-in, first out basis.
