MO-ATC: Adoption Tax Credit Claim (2024)
Missouri · Missouri DOR · Used for tax years 2024
Form MO-ATC is Missouri’s Adoption Tax Credit Claim form. It reports information about the claimant and adopted child, nonrecurring adoption expenses, and payments or credits that affect the Missouri credit amount.
Who files this form
Use Form MO-ATC to claim Missouri’s Adoption Tax Credit. Individuals and business entities may claim the credit for nonrecurring adoption expenses. Missouri residents may claim up to $10,000 per child.
Attach Form MO-ATC and Form MO-TC to your tax return each year you claim the credit. The form includes expense entries for adoptive parents and employers.
When it's due
The tax year 2024 form says you must file your return between July 1 and April 15 of each fiscal year to claim the Adoption Tax Credit. It does not specify calendar years for those dates.
If you would owe tax without the credit, the Department recommends paying the amount covered by the credit by your return’s due date to avoid interest and penalties. The text does not give a separate date for that payment.
What you'll need
To claim the credit, provide:
- Federal Form 1040.
- Federal Form 8839.
- Form MO-TC, Miscellaneous Income Tax Credits.
- Form MO-ATC, Adoption Tax Credit Claim.
You will need claimant and child information, placement and final adoption dates, adoption expense amounts, and amounts paid by employers or government programs. You also need the federal adoption tax credit claimed for the child from Federal Form 8839, Line 16.
Certifications and additional attachments:
- Part D must be certified by the Missouri Department of Social Services, Children’s Division.
- Part E is completed only for special needs adoptions. If submitted when claiming the credit at placement, it does not need to be resubmitted when the adoption is final or the remaining credit is claimed.
- If the special needs child was age 18 or older when the adoption became final, attach a physician’s statement that the child is physically or mentally unable to care for themselves and live independently of the adoptive parents.
- When first claiming a credit obtained through a sale or assignment, attach a completed Form MO-TF, a copy of the original Form MO-ATC completed by the adoptive parents, and Part A of the revised form.
How to file
- Complete Part A with the claimant’s information and tax type.
- Complete Part B with the child’s information, answer the questions, and select whether the claim is for placement in the home or a finalized adoption.
- Complete Part C with adoption expenses and the required reductions. Employers enter their total on Line 5 and skip to Line 11. Line 12 is the smaller of Line 11 or $10,000.
- Obtain the Part D certification and, for a special needs adoption, the Part E certification as required. Sign the form.
- Attach Form MO-ATC and Form MO-TC to your tax return each year you claim the credit, and provide the required federal forms.
The mailing address printed on the form is:
Taxation Division
Individual Income Tax
P.O. Box 27
Jefferson City, MO 65105-0027
The text does not provide e-file instructions. For questions, call (573) 751-3220 or email taxcredit@dor.mo.gov.
Common mistakes
- Leaving out required attachments. Attach Form MO-ATC and Form MO-TC to the return each year the credit is claimed. Federal Forms 1040 and 8839 are also required.
- Overlooking a later federal adoption credit. An additional federal adoption credit in a subsequent year will reduce the Missouri credit and may result in a bill.
- Assuming interest and penalties will be waived. The text says the statutes do not provide for waiving them because of credit apportionment. If you would owe tax without the credit, the Department recommends paying the amount covered by the credit by the return due date. Any payment not owed after apportionment will be refunded.
- Completing Part E for a non-special-needs adoption. Part E is only for special needs adoptions.
- Missing the physician’s statement. It is required if the special needs child was age 18 or older when the adoption became final.
Questions people ask
How much credit can I claim?
Missouri residents may claim up to $10,000 per child. Part C limits the credit to the smaller of $10,000 or eligible expenses after the required reductions. Total adoption credits claimed by all taxpayers are limited to $6 million per fiscal year.
Can I claim the credit before the adoption is final?
You may claim 50% of the credit in the year the child is placed in your home and 50% when the adoption is finalized.
What happens if my credit is more than my tax liability?
The credit is nonrefundable. The remaining credit may be claimed over the next four years. The form includes a worksheet to track available credit.
What counts as a special needs child?
The Missouri Children’s Division, a Missouri-licensed child-placing agency, or a court must determine that a factor such as age, membership in a sibling group, a medical condition or diagnosis, or a disability makes the child difficult to place with adoptive parents.
Can the credit be sold?
Yes. If sold, it must be sold for at least 75% of its value. The first claim resulting from a sale or assignment requires Form MO-TF, a copy of the adoptive parents’ original Form MO-ATC, and Part A of the revised form.