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Adoption credit

Level 1

I have a client who generated adoption credit in 2016 and have been taking some each year and carrying over to each year after due to low income limits. This year the carryover credit is showing up on the carryover worksheet line 19, and I have entered all the information on the Adoptive child worksheet. The amount flows thru to the adoption carryover computation worksheet however it does not generate a form 8839. What am I missing? They are clearly below the income limits. When I go to look at form 8839 it shows no information other than Line 3 being checked no which is incorrect. On the Adoptive child worksheet the box is checked yes for did you file form 8839 for a prior year and yes child has credit carryover. I appreciate any help. Thanks.

 

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3 Replies 3
Level 12

Do they need the credit or is their tax already zero?  Is 2020 the last year of the carryover, so the form is not needed to show carryover to 2021?

Level 1

Their tax is not zero, it is $4100. Their withholding is $5700. But it should still offset their tax. The credit was generated in 2016 so their 5 year carry forward  period is not up.It shows it being carried forward to 2021.

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Level 1

ok it appears that the software is not allowing credit to flow thru because adoptee is now 19 years old. However, back in 2016 year of adoption credit, he was 15. So why would software say he is too old now to take the carry forward credit even though it originated when he was age eligible. Pro series says can't carry forward if child not age eligible in 2020. Can anyone point me in the right direction? I thought I could use the carry forward based on the age in the year the credit was created.

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