Adoption Tax Credit for Foster?

butterflygrooves

I didn't think we would qualify for the credit since we are adopting from foster but the CW was just here and said we will qualify for it.

Anyone else adopt through foster and get the credit?

PrincessShay80

Ditto to what Fred said- our adoption was deemed special needs because there was one note in DD's medical records that said that her birth mom admitted to doing drugs while pregnant. DD was a perfectly healthy white infant, but because she "could" have been drug exposed they deemed her special needs. It's in our adoption decree so I hope we don't have a big issue net year when we file our taxes.

Duchess1

Yes.  We got it for our first adoption and should get it for the other two as well.  You also get to claim a placement as a dependent if they have been with you for 6 months or more. HTH!

Duchess1

Yes.  We got it for our first adoption and should get it for the other two as well.  You also get to claim a placement as a dependent if they have been with you for 6 months or more. HTH!

Dragonfly_Bride

Here is the definition of 'Special Needs" from the IRS website (I think #4 is what is preventing some people from being able to claim the tax credit for special needs adoptions:

In the case of an adoption of a special-needs child, you may be eligible for a certain amount of credit or exclusion regardless of actual expenses paid or incurred. A child has special-needs if (1) the child otherwise meets the definition of eligible child, (2) the child is a United States citizen or resident, (3) a state determines that the child cannot or should not be returned to his or her parent's home, and (4) a state determines that the child probably will not be adopted unless assistance is provided. The credit and exclusion for qualifying adoption expenses are each subject to a dollar limit and an income limit. 

From: https://www.irs.gov/taxtopics/tc607.html

mommytoconnor

Something to keep in mind, The adoption credit will possibly be going away at the end of the year and if they don't it may be decreased from what the current amount is.  Also, you have to finalize adoption by the end of the year to get the credit.  You can't just have them placed in your home.  You can claim them as a dependent if they are placed with you for 6 months, but you wont get the adoption credit until you finalize.  I just finalized on my son and he was from foster care.  I have a tax preparer who does only foster/adoptive parents taxes, as she is also an adoptive mom and so they have all the info.  I would suggest that you find someone in your area who specializes in tax prep for adoptions, cause not all tax people are educated in this area and you could miss out if not done correctly. Hope this helps.

Dragonfly_Bride

Here is an excellent summary of the tax credit, and what happens in 2011, 2012, as well as what possibly will happen 2013 and beyond:

https://www.creatingafamily.org/blog/adoption-domestic-adoption-international-adoption-embryo-adoption-foster-care-adoption/future-adoption-tax-credit-2011-2012-2013/ 

mamatojts

Yes you absolutely DO qualify. Not only do you qualify, you qualify for the ENTIRE amount.