Читать книгу J.K. Lasser's 1001 Deductions and Tax Breaks 2022 - Barbara Weltman - Страница 73

The amount of the adoption credit cannot be more than your tax liability for the year. Tax liability for this purpose means your regular tax, plus your tentative alternative minimum tax (without regard to the foreign tax credit), dependent care credit, credit for the elderly or disabled, either education credit, child tax credit, or mortgage interest credit if any.

However, if the credit exceeds your tax liability, you can carry the excess credit forward for up to 5 years beyond the year in which the credit arose.

If your employer has an adoption assistance program but you aren't entitled to some or all of the exclusion (e.g., your MAGI is too high or your expenses exceeded the dollar limit), plan to pay tax on the amount your employer pays or reimburses you. The employer is not required to withhold income tax on these payments. Employer‐paid expenses are reported on your Form W‐2.

There are no income limits for using the penalty waiver for distributions from qualified retirement plans to pay adoption expenses.

Obtain a taxpayer identification number for the child if he/she does not have one. Use Form W‐7A, Application for Taxpayer Identification Number For Pending Adoption, to obtain a temporary tax ID for a child in a domestic adoption who does not have or is unable to obtain his or her own Social Security number.