Leigh 01:16 PM 03-03-2015
I have an adoption credit to use for my 2014 taxes, and will be claiming the full $13,190 credit. My understanding is that this credit is now non-refundable. Is this correct?
I have probably $12,000-$15,000 in deductions this year, and have paid nothing in for taxes yet. My husband has paid in about $5600.
Is it worth itemizing everything to take more deductions, or should I just use the estimates available (like claiming the set amount for the food program)? Since the adoption credit is (I believe) non-refundable, I am thinking that maybe it's not worth my time to try to maximize deductions, since I can't get refunded for the "overage" created by the adoption credit. We have mortgage interest to deduct, 3 kids to claim, are filing jointly. Also, we inherited about $20,000 in cash and $5000 in property this year (I don't know how that gets taxed).
I could be dreaming here-I don't have a good understanding of the tax system, but I don't want to waste time on anything that's not worth it.
TomCopeland 11:27 AM 03-04-2015
Originally Posted by Leigh:
I have an adoption credit to use for my 2014 taxes, and will be claiming the full $13,190 credit. My understanding is that this credit is now non-refundable. Is this correct?
I have probably $12,000-$15,000 in deductions this year, and have paid nothing in for taxes yet. My husband has paid in about $5600.
Is it worth itemizing everything to take more deductions, or should I just use the estimates available (like claiming the set amount for the food program)? Since the adoption credit is (I believe) non-refundable, I am thinking that maybe it's not worth my time to try to maximize deductions, since I can't get refunded for the "overage" created by the adoption credit. We have mortgage interest to deduct, 3 kids to claim, are filing jointly. Also, we inherited about $20,000 in cash and $5000 in property this year (I don't know how that gets taxed).
I could be dreaming here-I don't have a good understanding of the tax system, but I don't want to waste time on anything that's not worth it.
You are correct that the adoption credit is not refundable. You should still be claiming all the business tax deductions you can. If your house expenses create or increase a loss, you can carryover this loss to next year. In your situation you may want to explore the option of using the simplified method of claiming house expenses, instead of filing Form 8829, in order to claim 100% of your property tax and mortgage interest on Schedule A. Talk with your tax preparer about this.