FEDERAL ADOPTION TAX CREDIT INFORMATION
The 2014 version of the Internal Revenue Service (IRS) Qualified Adoption Expenses (Form 8839) has been released. Additionally, the updated instructions for this form have also been released. Form 8839 is used by taxpayers to claim the adoption tax credit, an exclusion for employer-provided adoption benefits, or both. The changes to the form and instructions include:
– Maximum adoption credit exclusions have been adjusted to reflect the 2014 value of $13,190 per eligible child.
– Instructions regarding adoption of children with special needs have been revised.
– Adoption credit carry-forward worksheet in the instructions for line 16, which identifies unused credits that taxpayers may carry forward for 2015, has been modified to reflect that there are now three years (2012-2014) for which a taxpayer might have carry-forward amounts.