Did you finalize your adoption in Florida between 2005 and 2009? If so, take another look at your tax returns and be sure you took advantage of the federal adoption tax credit. From 2003-2011 this credit (which on average is up to $12,000 was a refundable tax credit. That means the credit is one you get back no matter what you owe or paid in taxes for the year. After 2011, the credit became non-refundable. That means you only receive what you have in federal income tax liability.
So why talk about this now? Because since taxes from 2005 and 2009 can still be reviewed and updated, it may be a good idea to have a tax professional review your tax return to make sure you took full advantage of the credit. If the amount of the credit you were to receive exceeded your tax liability, you can carry over the remainder to the next tax year.
The adoptions tax credit is an incentive to encourage Floridians and people all over the United States, to adopt children in need of homes. In Florida, and in other states, there is often continued financial assistance when a family adopts a child through the state in certain categories (a sibling group, a special needs child, children in a particular minority class). Additionally, some families will receive a tuition waiver for their adopted children when they adopt through the State.
The Florida adoption website (http://www.adoptflorida.org/benefits.shtml) has a link the IRS site and more information on how the credit works. This site can also provide additional information about continuing financial support as well as tuition assistance. The North American Council on Adoptable Children, or NACAC, (http://www.nacac.org/taxcredit/taxcredit.html) also has more information on the tax credit. Along with the general information on the site regarding the tax credit, be sure to check out the FAQ’s as well.