Tax Credit ?

smith486

After the last tax credit thread, I was a little worried. My DH and I don't pay additional taxes in April, we get a nice little check in the mail.

After reading the previous post, I was lead to believe that the extension into 2012 would not be refundable. Meaning that the amount is just subtracted from what you owe in taxes. (Am I correct about what this means?) This would result in my DH and I getting nothing because we don't owe at the end of the year? 

I did a little (very little) more searching and found this: 

https://taxes.about.com/od/deductionscredits/qt/adoptioncredit.htm

They say that the 2012 extension does include a refund. Does anyone know if this information is correct or if my thinking about how it all works is correct? 

I am tax illiterate! 

come*on*baby

I;m so glad that DH is in charge of taxes. I did my own taxes before we got married, but he's done them ever since. And with the addition of 2 adoptions this past year, we were both confused on the whole tax credit, that is until it popped up in Turbo Tax. I think he was going to pass out in his chair at work.

Dragonfly_Bride

The tax credit is now refundable. This is the first time it has been refundable, up until 2010 it's been a credit. Even if it wasn't refundable, it didn't matter what you owed or didn't owe at the end of the year, but what you tax liability was all year all together.

Right now the IRS hasn't updated their form or instructions for 2010, but they do have it in draft form. Here's the info, so far:

https://www.irs.gov/newsroom/article/0,,id=228301,00.html

and the draft form:

https://www.irs.gov/pub/irs-dft/f8839--dft.pdf

 

smith486

Fredalina- THANK YOU!!!! I feel like you just taught me Tax101! I feel like I now completely understand it and could explain it to someone else. Thank you, thank you, thank you!!

Thank you to everyone else, too! I was SO royally confused. (If you couldn't tell.)