Form 41-154b - Ia 177 Iowa Adoption Tax Credit Instructions - 2016

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2016 IA 177 Iowa Adoption Tax Credit Instructions
Part I - Line 2: The child’s identifying number
The Iowa Adoption Tax Credit equals the
smaller
of
$2,500
or
qualified
adoption
can be a Social Security Number, an adoption
expenses paid or incurred by the taxpayer in
taxpayer identification number, or an individual
connection with the adoption of a child by the
taxpayer identification number. Leave the line
taxpayer. If you and your spouse adopted the
blank if no number is available.
child together and file jointly, only one credit
Part I - Line 6: If you and another person
may be claimed between the two of you. If you
adopted the child, report the name of the other
and your spouse file separately on the same
parent if not reported on the IA 1040.
return, the credit must be divided between the
Part I - Line 7: If you and another person
two of you. If you and another adoptive parent
adopted the child, report the Social Security
each paid qualified adoption expenses to adopt
Number of the other parent if not reported on
the same child, the credit must be divided
the IA 1040. If you cannot obtain that number,
between the two of you. You can divide the
you may leave the line blank.
credit in any way.
Part II – Line 1: Report all adoption expenses
“Qualified
adoption
expenses”
means
paid or incurred in 2016 including any
unreimbursed expenses paid or incurred in
expenses reimbursed by an employer or other
connection with the adoption of a child,
entity. If expenses were paid or incurred by you
including medical and hospital expenses of the
biological mother that are incident to the child’s
and your spouse and you are filing separately
or by you and another adoptive parent, only
birth, welfare agency fees, legal fees, and all
include your share of the expenses. Do not
other fees and costs that relate to the adoption
include expenses paid or incurred in 2016 if
of a child.
you or another adoptive parent claimed an
The credit can only be claimed once an
Iowa Adoption Tax Credit for those expenses
adoption is finalized. You may not claim the
in another tax year.
credit for expenses related to an adoption that
Part II – Line 5: If you claimed Iowa Adoption
has not become final.
Tax Credits for this child in a different tax year,
The adopted person must be under 18 years
report those amounts here.
old and must be permanently placed in Iowa by
Report all amounts claimed on a married filing
the Iowa Department of Human Services or
jointly return.
other similar State agency, by a licensed
agency, or by a person making an independent
Part II – Line 6: Report all Iowa Adoption Tax
placement.
Credit claims made by another taxpayer for this
child. Include amounts paid this tax year or in a
Adoptions that became final in 2016: If your
different tax year unless you made claims on a
unreimbursed expenses were less than the
married filing jointly return.
maximum allowable credit of $2,500 in 2016,
you may amend your 2014 or 2015 return to
Complete a separate IA 177 for each qualifying
claim expenses paid or incurred in those years.
adoption.
Report the tax credit claim in column
Your total Iowa Adoption Tax Credit claims are
K of Part II
on the IA 148 Tax Credits
limited to $2,500 for each qualifying adoption.
Schedule; use tax credit code 66 in column I
and leave column J blank. If you have
completed multiple IA 177s, report each credit
separately on the IA 148. Any tax credit in
excess of tax liability can be refunded or
credited to tax liability for the following year.
41-154b (08/24/16)

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