[sfalone]

All,

When do you consider the adoption final for receiving the tax credit? We paid all the expenses for the adoption in 2005 but Marco will be coming home on 1/10/06. All the paperwork for the adoption was complete in 2005, our Pink Appt. is in 2006 though.

Ant help would be greatly appreciated.

Stacy

[carney10]

I think someone told me that the IRS recognizes the adoption when they actually enter the country. But I would think that the date on the BC would be what they should use. We are officially the parents then and as you all know we have done our share of supporting the children while in foster care. (as in fees paid to attorney and the items taken down on visit trip, etc.)

Maybe someone else can tell us for sure.

[becky]

Here you go:
To be eligible for the tax credit, you must fulfill all of the requirements listed below:

1. You must have a finalized adoption. If your child comes home on an IR-3 visa, meaning that both spouses in a married couple, or a single parent, saw the child prior to the overseas finalization, the IRS considers the adoption to be full and final in the year you 'bring your child into the U.S.'...this is the same requirement as the USCIS, so you can take the credit in that year.

2. If your child comes home on an IR-4 visa the IRS (just like the USCIS) considers your adoption to be finalized when you have readopted your child in your home state or, in states where it is allowed you will do a "recognition" or "domestication" of your child's foreign adoption. You cannot claim the credit until the year in which the readoption, recognition or domestication occurred.

As always if you have questions please speak to an attorney or tax advisor in your state.

[amouton]

I did a search on here (adoption.com) and it gives a detailed expinantion of the tax credit. Here is a peice I copied from it on when your adoption is considered final for tax purpouses.




When adoption is final. When the adoption becomes final depends on the type of immediate relative (IR) visa under which the child enters the United States.

IR-3 visa. Theadoption of a child who enters the United States on an IR-3 visa is treated asfinal in the year the competent authority enters a decree of adoption. Thecompetent authority is the court or other governmental agency of the foreigncountry that has jurisdiction and authority to make decisions in matters ofchild welfare, including adoption.

Other IR visas. Theadoption of a child who enters the United States on an IR visa other than anIR-3 visa, is treated as final in the year in which a court of the state inwhich the child and parents reside enters a decree of adoption, re-adoption, orotherwise recognizes the adoption decree of the foreign country.

[amouton]

Just wanted to add that I just checked the US governments tax site and that peice was taken directly from it.

[Kesti]

Interestingly enough, the adoption credit will apply the date that the final adoption degree is signed in Guatemala. The owner of our agency had told us this and it turned out to be true. It is not the date that you bring the child home.