[kinnj]

Hi all
Hope someone out there can help me.
We had a failed placement in 2003. IRS says we can take the tax credit for the failed placement on our 2004 return. In the meantime, we had a successful placement in 2004. I will not take the credit for this adoption till 2005 return.
My questions are this...
Should I claim the successful adoption as a dependent for 2004 since I am claiming a failed placement.
Also, should my successful dependent's name be on the 8896 form. I am not using the credit on him so I don't think his name should be on the form.
Also, do you need to send any documentation from the agency along with the tax return saying you had custody of the child. I was thinking it probably wouldn't hurt.
Any help with this would be greatly appreciated. I have contacted lawyers and accountants and noone really knows what to do.
It would help if someone had the same experience and was successful in claiming the tax credit.
Thanks for all your help
Kinnj

[BlueMommy]

This same situation applies to us, even down to a failed placement in 2003. Please let me know what you find out.

[ermiller]

The joys of the IRS...Yes you can claim your successful adoption as a dependent (get deduction) but you cannot get the child tax credit without a social security number or an ATIN (form W-7A takes weeks and weeks). I would put the information you have about the failed situation on the 8896 as well as information you have regarding the successful adoption.

We had the same situation with a failed placement 2003 (but we had paid our fees in 2002 so could claim those in 2003) and successful placement this year. One place told me I could in fact take the credit for our successful placement even though it hasn't finalized and another didn't know and referred me to the irs -which despite being the creator of these rules can't define them. I know someone who took the credit even though the adoption won't finalize until this spring and the IRS accepted it. Annoying isn't it that we cannot get a good answer from anyone!
Erin