Fillable Form Mo-Atc - Adoption Tax Credit Claim (Page 2 of 2) in pdf

General Instructions - Adoption Tax Credit

To Claim the Adoption Tax Credit:

Individuals and business entities may claim a tax credit for their total

nonrecurring adoption expenses. Missouri residents may claim up to

Form MO-TC

Attach Form MO-ATC and

to the tax return the first year

$10,000 per child. The full credit may be claimed when the adoption is

the adoption tax credit is claimed. (The remaining four years the credit

final, or a claim for 50 percent of the credit may be made when the child is

is claimed only attach Form MO-TC to the return.) When first claiming

placed in the home and the remaining 50 percent may be claimed when the

the credit as the result of a sale or assignment, attach a completed

adoption is final.

Form MO-TF and a copy of the original Form MO-ATC completed by the

adoptive parents, as well as Part A of the revised form.

The credit is non-refundable and limited to the tax liability. The credit is

available for a total of five consecutive years. The five year period begins

Due Date:

when the credit is first taken or the adoption is final, whichever occurs

To claim the ATC for children who were Missouri residents when the

first. The cumulative amount of adoption tax credits claimed cannot

adoption was initiated must be filed between July 1 and April 15 of each

Section 135.327,

RSMo.

exceed the limit established in

fiscal year. ATC claims for children who were not Missouri residents

Special Needs Child:

when the adoption was initiated must be filed between July 1 and

December 31 of each fiscal year. Note: Non-resident adoptions may only

A child for whom it has been determined by the Missouri Department

of Social Services, Children’s Division, a child-placing agency licensed

be claimed if the adoption was finalized on or before March 28, 2013.

by the state, or a court of com petent jurisdiction to be a child who has a

specific factor or condition such as ethnic background, age, membership

in a minority or sibling group, medical condition, or handicap because of

which it is reasonable to conclude that such child cannot be easily placed

with adoptive parents.

Instructions

Line 7: Enter the amount paid by your employer.

Part A

Enter the adopted special needs child information and provide answers to

Line 8: Enter the amount of your adoption tax credit from Federal Form

the questions by selecting each appropriate box.

8839, Line 11 for specified child.

Line 9: Enter the amount you received from other state or local

Part B

programs.

Enter the employer information if they have provided funds to ward the

Line 10: Add Lines 6 through 9 and enter the amount on Line 10.

adoption and are claiming a portion of the credit.

Line 11: Subtract the amount on Line 10 from the amount on Line 5.

Part C

Enter the amount on Line 11. (Employer enter amount from Line 5.) If

Enter the nonrecurring adoption expenses incurred by the adoptive

Line 10 exceeds the amount on Line 5, enter zero (0) on Line 11.

parents or the employer (up to $10,000). Nonrecurring adoption

Line 12: The special needs adoption tax credit is limited to the lesser of

expenses include: reasonable and necessary adoption fees, court costs,

the total on Line 11 or $10,000. Enter the smaller amount on Line 12.

attorney fees, and other expenses which are directly related to the

Part D

adoption of a special needs child and are not incurred in violation of

The Missouri Department of Social Services, Children’s Division must

federal, state, or local laws.

Section 135.815,

RSMo, requires the

certify the adoption expenses in Part C will not be reimbursed from

Department to reduce the credit by any in come, sales, use, or insurance

funds available under any federal, state, or local programs. If credit is

tax delinquency including interest and penalties.

claimed upon placement of the child, this certification will be completed

Line 1: Enter the total amount of the reasonable and necessary adoption

at that time and does not need to be resubmitted, when the adoption is

fees incurred.

final or when the remainder of the credit is claimed.

Line 2: Enter the total amount of court costs associated in the adoption of

Part E

the special needs child.

Must be completed by the agency certifying the child meets the criteria

Line 3: Enter the total amount of attorney fees associated in the adoption

as a special needs child. If the credit is claimed upon placement of the

of the special needs child.

child, this certification will be completed and submitted at that time and

does not need to be resubmitted when the adoption is final or when the

Line 4: Enter the total amount of other directly related expenses (which

remainder of the credit is claimed.

are not in violations of federal, state, or local laws.)

Line 5: Add Lines 1 through 4 and enter the amount on Line 5. This

If you require additional information, you may call the Missouri

is the total amount of nonrecurring special needs adoption expenses.

Department of Revenue at (573) 526-8733 or (573) 751-5268 or e-mail:

Employers claiming the credit enter total on Line 5 and then skip to Line 11.

income@dor.mo.gov.

Line 6: Enter the amount paid by the Missouri Department of Social

Services, Children’s Division.

Adoption Tax Credit Worksheet

Use the Adoption Tax Credit Worksheet to track your available credit.

1st Year

2nd Year

3rd Year

4th Year

5th Year

A. Tax liability..............................................................

B. Amount claimed......................................................

Amount From

Ending Balance

(3rd Year Line F)

MO-ATC, Part C,

(1st Year Line F)

(2nd Year Line F)

(4th Year Line F)

Line 12

C. Beginning balance ..................................................

D. Amount allowed by Department of Revenue...........

E. Credit sold or transferred.........................................

F. Ending balance (Line C less Line D, and Line E) ....

Form MO-ATC (Revised 12-2013)

Form Mo-Atc - Adoption Tax Credit Claim Page 2

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