Summary
The IRS announced that many Americans might be eligible for up to $5,000 in refunds through the Adoption Tax Credit. This affects families who adopted children and incurred related expenses. The IRS plans to provide more guidance on claiming this credit soon.
Key Facts
- IRS Chief Frank Bisignano said that the Adoption Tax Credit could give refunds up to $5,000 per adopted child.
- The new policy starts for the tax year 2025 and carries forward amounts from previous years.
- The U.S. has between 100,000 and 150,000 adoptions annually.
- Refunds are available to those who pay more federal taxes than they owe or qualify for refundable credits.
- No new federal stimulus checks have been approved; existing tax laws govern these refunds.
- The maximum credit for the Adoption Tax Credit is $17,280, with up to $5,000 refundable.
- The credit covers certain costs like adoption fees, legal fees, and travel expenses.
- People who have missed claiming past credits might still get significant refunds.
