As part of Senate Enrolled Act 2(ss), SEA 2(ss), enacted during the special session of the Indiana General Assembly during the summer of 2022, Indiana not only increased the amount of the credit Indiana taxpayers can claim against their Indiana State Income Taxes, but it may also enable some taxpayers to amend their tax returns filed after December 31, 2014, to claim the increased amount for each eligible child. The Indiana law provides that Indiana taxpayers can claim the lesser of 20% of the federal tax credit and $2,500. But, unlike the previous version of Indiana Code § 6-3-3-13, the new law makes the tax credit refundable, meaning that the taxpayer may get a tax refund even if the taxpayer paid Indiana State Income Tax less than the amount of the credit. However, implicit in SEA 2(ss) is that the taxpayer received some amount of the federal tax credit (20% of zero is zero).
We, at Adoption Attorneys Kirsh & Kirsh, P.C., limit our law practices to adoption law. Anyone reading this should not construe this information as tax advice. We bring this to the attention of Indiana families who have already adopted and those intending to adopt, in order to alert them to seek tax advice from qualified tax advisors or accountants.
If you have an opportunity to adopt or questions about adoption, call: 317-575-5555, text: 800-333-5736, contact us, or Facebook message. We answer our office phone 24 hours a day, every single day. We try to respond to emails and text messages within minutes of receipt.