[jillned]

We finalized our son's adoption in June of this year. When we file our taxes in 2006, I realize we'll be able to use the tax credit. My question is, if we should happen to adopt another child before 2005 is over, is that considered as a seperate credit? I guess to sum it up, what happens if you have 2 adoptions in one year?

Thanks

[LisaCA]

from what I understand (and i am by no means an expert on this), each adoption is treated individually, so you should be able to use the credit.

you might want to call the IRS (you should be able to get thru now that it's not tax time) and see what they say.

I just went to the irs website and they have an example on their page about adopting two kids and getting the tax credit twice, so yes, you can get the credit twice in one year. Here's the webpage:

http://www.irs.gov/publications/p968/ar01.html#d0e287

Lisa

[Kimmisue]

I think you can get the credit for 2 adoptions in one year, but you can only claim adoptions that have been finalized. So, if you don't finalize until after the first of the year, then you'd have to wait until the following year to claim it.

Kim

[sak9645]

You may claim the tax credit for each child you adopt, whether you adopt them all at once or on different occasions.

The only rule is that you can count a qualifying adoption expense only once. In other words, suppose that you adopt twins from China. You fly over to China to complete your adoption and bring your child home. You can claim two tax credits, since two children are involved. However, you can count your airfare as a qualifying adoption expense only for one of those adoptions, since you traveled only once. You can, however, claim each child's airfare

The rules for when you may claim the tax credit vary, depending on whether you have international or domestic adoptions.

With international adoption, if your child comes home on an IR-3 visa, you are considered to have had a full and final adoption in the foreign country. You take the tax credit in the year the foreign adoption decree was issued, and do not have to wait to readopt. An IR-3 visa is given if a person adopting as a single, or BOTH spouses in a married couple, see the child before the foreign adoption decree is issued.

If, however, your child came home on an IR-4 visa, you are not considered as having had a final adoption in the foreign country even if the foreign country views it as such. You must either adopt/readopt in your home state or obtain a document from your state showing that it "recognizes" your foreign adoption. You take the tax credit in the year the judge signs the readoption order or in the year specified on your recognition document. An IR-4 visa is given if any parent did NOT see the child prior to the issuance of a final decree abroad, or if the child is brought to the U.S. for adoption here (as with Korean adoptions).

I have heard that the IRS may be changing these rules concerning the tax credit. They basically follow the USCIS definition of a full and final adoption right now, but they may move towards a more understancable approach at some point. So always consult the IRS website, your tax software, and/or a tax professional prior to filing your 1040.

Others on this board can explain to you the timing of the tax credit for domestic adoption.


Sharon