Question about the Adoption Tax Credit

I'm putting the cart way before the horse by even thinking about this yet, but a couple posts below referencing the adoption tax credit got me thinking about it.  Couple questions...

1) If you adopt a child out of foster care, are you still eligible for the tax credit?  I realize in this case your expenses, and thus credit, would be minimal, but it leads me to question 2

2) What is the definition of "special needs" per the credit?

Re: Question about the Adoption Tax Credit

  • imagefredalina:

    1) Yes

    2) IDK, but we were told that almost all kids in foster care qualify as "special needs" because they either have special medical needs (i.e. in D's case, being born addicted *could* predispose her to problems later) or emotional problems stemming from abuse or neglect.  There may be an exception where a child enters care only because it was orphaned and there were no living relatives, but that's got to be rare these days. 

    And "special needs" kids are eligible for the FULL tax credit, not just what you've paid for the adoption.

    thanks fred, you confirmed exactly what i was thinking - we were also told that 90% of children in foster care will qualify as special needs...i just wasnt sure how the state's classification would line up with the federal

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