I am being told that we can use the adoption credit since we adopted our daughter from foster care in August 2007, even though we really didnt incur expenses other than parking at the courthouse, and travel to the courtdates etc.
She is white, and was 19 months old at the time of her adoption. Does she qualify as 'special needs'? (Her Birthparents lost her because both were using drugs, and she may have had drugs in her system at birth).
Here is the tax guidelines...what do you think?
Use Form 8839 to figure the amount of your adoption credit and any employer-provided adoption benefits you can exclude from your income. You can claim both the credit and the exclusion for expenses of adopting an eligible child. But, you cannot claim both for the same expenses.
Adoption credit. Use Form 8839, Part II, to figure the amount of adoption credit you can take on Form 1040, line 54, or Form 1040NR, line 49. You may be able to take this credit if any of the following statements are true.
- You paid qualified adoption expenses in:
- 2006 and the adoption was not final at the end of 2006, or
- 2007 and the adoption became final in or before 2007.
- You adopted a child with special needs and the adoption became final in 2007. (In this case, you may be able to take the credit even if you did not pay any qualified adoption expenses.)