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What your accountant is suggesting is kind of dangerous. Your adoption needs to be finalized by the end of the year before you are entitled to the tax credit. So if for some reason the adoption can't be finalized for a while (and there are a million non-scary reasons) you could end up owing money at the end of year. We mananged to get in just under the wire for our baby born around the same time as yours. But it took forever to get the final order and then after 8 weeks of waiting for the birth certificate which we needed to get him a social security number we found there was a typo in the order so the order had to be redone. Then before we could file our taxes we had to wait another couple of months for his birth certificate. We ended up filing our taxes in July. If we had owed money to the government we would have owed tons of money in interest. If we had not finalized until January 2 we would not be entitled to the credit until 2007 for a kid born in 2005.
If you can swing it, the safer course of action is to keep your withholdings the same until finalization.
Jen
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