MO-RAC: Refundable Adoption Credit Claim (2024)

Who files this form

Use Form MO-RAC to claim Missouri’s Refundable Adoption Tax Credit for tax year 2024. Eligible claimants include:

• Missouri residents with qualifying nonrecurring adoption expenses.
• Business entities that provide funds to an employee to proceed in good faith with adopting a child.

Qualifying expenses include reasonable and necessary adoption fees, court costs, attorney fees, and other expenses directly related to the legal adoption. Expenses cannot be incurred in violation of federal, state, or local law.

For 2024, the credit is limited to qualifying expenses after the required reductions or $10,318, whichever is less. Only one credit is available for each adopted child.

What you'll need

To prepare your claim, have:

• Form MO-RAC, Form MO-TC, and Form MO-1040.
• Claimant identification, address, and tax type information.
• The child’s name, birthdate, Social Security number if available, state or country of origin, placement date, and date the adoption became final, as applicable.
• Amounts for adoption fees, court costs, attorney fees, and other directly related expenses.
• Amounts paid by Missouri Children’s Division, your employer, or other government programs, plus the federal adoption credit claimed on Form 8839, line 16, for that child.

Part D requires certification by the Missouri Department of Social Services, Children’s Division.

For a special needs adopted individual who was age 18 or older when the adoption became final, attach a physician’s statement that the individual is physically or mentally incapable of caring for themselves and living independently of the adoptive parents. The form also directs you to complete Part E only for special needs adoptions involving an individual age 18 or older.

How to file

1. Complete claimant information in Part A and adopted child information in Part B. Select whether the claim is for placement in the home or a finalized adoption.
2. Complete Part C to calculate the credit. Employers enter total expenses on line 5, then skip to line 11.
3. Obtain the required Part D certification and complete Part E when applicable.
4. Sign the form. Attach Form MO-RAC to Form MO-TC and submit them with Form MO-1040.

The form lists this mailing address:

Missouri Department of Revenue

Taxation Division, Individual Income Tax

P.O. Box 27

Jefferson City, MO 65105-0027

Common mistakes

• Leaving out required forms: MO-RAC must be attached to Form MO-TC and submitted with your tax return.
• Missing the physician’s statement: If you answer yes to both special needs questions in Part B, the statement must be attached.
• Completing Part E unnecessarily: The form says to complete it only for special needs adoptions when the adopted individual is age 18 or older.
• Using MO-RAC for an older credit: For an adoption credit issued before January 1, 2024, the form directs you to Form MO-ATC.
• Claiming government-funded expenses: No credit is allowed for the portion of expenses paid with funds received under a federal, state, or local program.

Questions people ask

Can I claim part of the credit before the adoption is final?

Yes. You may claim 50% in the year the child is placed in your home and 50% when the adoption is finalized.

What if the credit is larger than my tax liability?

The remaining credit may be refunded. The Department must reduce the credit for income, sales, use, or insurance tax delinquencies, including interest and penalties.

Does the child have to be a Missouri resident?

No. The credit is allowed regardless of whether the child is a Missouri resident or a ward of a Missouri resident when the adoption begins.

Do I need to resubmit the special needs certification when the adoption becomes final?

If the certification was completed and submitted when you claimed the credit upon placement, it does not need to be resubmitted when the adoption becomes final or when you claim the remaining credit.

Official sources

• https://dor.mo.gov/forms/MO-RAC_2024.pdf