[myangels]

Hello can anyone explain the Tax Credit when you adopt via foster care?

[foster_bub]

This should help

The Adoption Tax Credit

[DianeS]

Are you referring to the Adoption Tax Credit?

If so, it works just the same for an adoption from Foster Care as it does for an adoption from any other source, with one exception - if the child you adopt from US Foster Care is considered a special needs child (as defined by the state from which the child was adopted), then the parents qualify for the *entire* adoption tax credit regardless of how much money they actually spent on the adoption.

(Regular exclusions still apply. It's still possible to make too much money to use the credit. It's still possible to have a tax liability so low that the adoption tax credit is of no benefit. Etc.)

Post back with questions if you need additional information.

[hkolln]

Originally Posted by DianeS

If so, it works just the same for an adoption from Foster Care as it does for an adoption from any other source, with one exception - if the child you adopt from US Foster Care is considered a special needs child (as defined by the state from which the child was adopted), then the parents qualify for the *entire* adoption tax credit regardless of how much money they actually spent on the adoption.

This is true. Because we receive an adoption subsidy and our daughter was deemed special needs due to age at time of adoption we will qualify for the entire tax credit next year. That sure will help!