What is the Adoption Credit?
You can claim a credit if you finalized the adoption of an eligible child in 2018. An eligible child is:
- any child under age 18, or
- any disabled person physically or mentally unable to take care of himself or herself.
The amount of the credit is $1,000 per child. If the amount of the credit exceeds your tax liability for 2018, you can carry forward the unused credit to the next five tax years. For Montana purposes, this carryforward applies only to adoptions that were finalized on or after January 1, 2007. Also, the legal adoption of a stepchild does not qualify for the federal or Montana credit. Include a copy of federal Form 8839
with your tax return.