Where did you find the information? My husband and I have been searching and would love to read more about the 2013 tax credit.

Thanks a ton for posting!! 

UPDATE: The House has not yet passed the bill and seems to be having some issues with it (non-adoption tax credit related). We'll have to see how it works out over the course of the next several hours/days.

I have the info because I work there. I will try to get more specific information for all of your questions,especially on the refundability. My initial understanding is that the credit remains NOT refundable, but don't quote me yet.

alancook01:

Maybe its not too late to get it made refundable in the house bill. The congress offices are closed today but i will call mine in the morning and ask about it.nbsp;

maryoosa:

The house passed the fiscal cliff bill.

It is passed, but did it pass as Non-refundable?

maryoosa:

Looks like it's non-refundable.

This is what someone wrote on the "save the adoption tax credit" facebook page...  when the budget that the senate passed last nite goes to the house someone has to bring it up for a vote to be added to the budget and sent back to the senate for final approval, were not completely without hope just yet.

So maybe we still can have hope?

LIQueen:

maryoosa:

Looks like it's non-refundable.

 

This is what someone wrote on the "save the adoption tax credit" facebook page...  when the budget that the senate passed last nite goes to the house someone has to bring it up for a vote to be added to the budget and sent back to the senate for final approval, were not completely without hope just yet.

 

So maybe we still can have hope?

It appears they passed the bill as it stood, which means its non-refundable :( 

lafayettegirl:

Ladies & Gents:

The Adoption Tax Credit extension IS included in the fiscal cliff package the Senate is currently voting on...and by currently, I mean they are voting at 1:44 a.m. on January 1. I believe the tax extension is permanent, though I am trying to confirm, since I am not at work and getting this stuff via my BB.

Here is what is included:

1. increases the expense limit and exclusion to $10,000 for both non-special needs and special needsadoptions,

2. makes the credit independent of expenses for special needs adoptions,

3. increases the phase out point to $150,000,

4. indexes for inflation the expense limit and phase-out start point for both the credit and the exclusion,

5. and allows the credit to apply to the AMT.

Some of this stuff is weedy, so if you want to know more, let me know. For now, though, be assured the extension is in the package!

(Insert sigh of relief here!)

No sigh of relief here. Without the refundability part of the credit, this is worthless. 

alancook01:

lafayettegirl:

Ladies & Gents:

The Adoption Tax Credit extension IS included in the fiscal cliff package the Senate is currently voting on...and by currently, I mean they are voting at 1:44 a.m. on January 1. I believe the tax extension is permanent, though I am trying to confirm, since I am not at work and getting this stuff via my BB.

Here is what is included:

1. increases the expense limit and exclusion to $10,000 for both non-special needs and special needsadoptions,

2. makes the credit independent of expenses for special needs adoptions,

3. increases the phase out point to $150,000,

4. indexes for inflation the expense limit and phase-out start point for both the credit and the exclusion,

5. and allows the credit to apply to the AMT.

Some of this stuff is weedy, so if you want to know more, let me know. For now, though, be assured the extension is in the package!

(Insert sigh of relief here!)

 

 

No sigh of relief here. Without the refundability part of the credit, this is worthless. 

I am definitely not a tax expert, but I *believe* you can carry forward this credit forward.  This means that it will reduce your tax liability in future years, which will allow you the financial benefit although somewhat deferred.  For example, if you qualify for $10k of adoption credit but only have a $6k tax liability in 2012, you are able to carry forward the unused $4k portion in 2013.  So if you owe $5k in 2013, you would only pay $1k.

Does anyone know if the carry forward is capped to a certain number of years? 

Lurker here (beginning the adoption process in 2013). I am not an accountant, but if the credit is non-refundable, couldn't you just adjust your withholdings throughout the year to balance out the amount of the credit, similar to the adjustments for the child tax credit? So rather than claiming 1 allowance, you maybe claim 4 or 5, so that the amount of taxes withheld from each paycheck is smaller. Let's say at the end of year, you'd then owe a few thousand dollars in taxes, but you could reduce that to zero with the credit and just carry forward the credit & repeat until you've used up the $10k.

Edit: On page 17, there is a worksheet for doing this:

 http://www.irs.gov/pub/irs-pdf/p919.pdf