[Tammy2005]

Or do we have to wait until she is readopted here in the states?? Just wondering if anyone knows if we are able to claim her on our taxes now or will we have to wait until next year? We have her social security card already. Just wondering if anyone knows. Thanks Tammy

[DD Amasa]

Yes you can claim her. Readoption is a state law that varies from state to state and has nothing to do with federal income tax law.

[tooskis]

Just to 2nd the above. You can claim her for 2006. Great, huh?!

[tybeemuffin]

I thought it all depended on whther or not your child came home on an IR3 or OR IR4. From what I had heard if the child came home on an IR4, the readoption had to be complete before the end of the year to claim on taxes. I think I heard that this was changng for 2007.

Does anyone know?

[cr653]

we were not able to claim out daughter until her adoption was finalized her in the states.

but then only i visited, so it might be a visa issue.

we did use an accountant who had adopted,
so i trust his opinion.

cris.

[Tammy2005]

oK thats two for yes and two for no, lol anyone else know for sure? Do we need to readopt here in the states first before we can claim her?

[hunterfamily]

You only have to readopt if you came home on an IR-4. If you came home on IR-3 you don't need to readopt for tax's. That is what I read on the IRS web site. It has nothing to do with the state you live in. That is another whole issue that has nothing to do with tax's.

[Larue]

OK...I always weigh in on whether I should respond to these tax related posts. I'm an Auditor - not that makes me an authority. But I do try to stay abreast of Federal tax provisions related to adoption benefits. The IRS issued a bulletin - Announcement 2005-45 back in June 2005 concerning Finality of Foreign Adoptions. Here is the text of the provision:

Time of finality and alternative provisions


Commentators disagreed that the adoption of a foreign-born child who receives an IR2 visa or who receives an IR4 visa and enters the United States under a decree of simple adoption should be final only upon action of the home state. The commentators suggested that the credit should be available earlier, when the foreign-sending country enters a decree of adoption. The final revenue procedure adopts this suggestion and provides alternative dates of finality for the adoption of a child who receives an IR2 or an IR3 visa, or who receives an IR4 visa and enters the United States under a decree of simple adoption. Taxpayers may treat these adoptions as final for federal income tax purposes:

(a) In the taxable year in which the competent authority enters a decree of adoption; or

(b) In the taxable year in which a home state enters a decree of re-adoption or otherwise recognizes the decree of the foreign-sending country, if that taxable year is one of the next two taxable years after the taxable year in which the competent authority enters the decree.

I have to add -- many "tax professionals" are unfamiliar with Federal adoption benefits. For example, many people are under the impression that an adopted child has to reside with you for 6 months during the "tax year" in order to claim them as a qualifying dependent. However under Federal tax provisions - an adopted child is treated the same as a child that is born to you. So if your adoption decree was signed at 11:59 pm on 31 Dec - you CAN still claim that child as a dependent. You can also claim the $10K adoption tax credit - if you're eligible. If you have any questions - the IRS has a toll free number.

Telephone Assistance for Individuals
Toll-Free, 1-800-829-1040.

Best wishes

[cheri25]

Laura,

Do you know it the same applies for the child tax credit? My daughter came home in June 2006. I do my own taxes with Tax Act, and when they ask how long the child has lived with you, would I put 6 or 7 months? She came home on the 7th of June. It seems that if I put 6 months it doesn't give me the credit, but if I put 7 it does. By the way, she came home on an IR-3 Visa.

Thanks for any help

[Guatemomtobe]

I just went to an adoption tax credit seminar with a CPA and he said that it doesn't matter which visa you come home on. As long as the adoption is finalized by the governing authority in the foreign country, you can take the credit. If you are home in 2006 with your child, you can take the credit.

Good luck!
Susan

[bbeard72]

Someone said if you are home w/ your child in 2006 you can claim.
We exited PGN on 12/21 and the adoption was final on 12/28 but he is not home. We plan to take the credit as it was final in 2006.
Bren

[hunterfamily]

This came from the IRS web site, it does say it depends on the type of Visa the child comes home on. If this is not the way it is then the irs needs to update its web site.

(1) If the child receives an IR2 or an IR4 visa and enters the United States under a decree of simple adoption, the adoption will be treated as final in the taxable year in which a home state court enters a decree of re-adoption or otherwise recognizes the adoption decree of the foreign-sending country;
(2) If the child receives an IR3 visa, the adoption will be treated as final in the taxable year in which the competent authority enters the decree of adoption; and
(3) If the child receives an IR4 visa and enters the United States under a guardianship or legal custody arrangement, the adoption will be treated as final in the taxable year in which a home state court enters a decree of adoption.

[DD Amasa]

Larue is 100% correct. The visa type doesn't matter. The rule was changed in June 2005. The IRS accepts the Guatemalan decree as final for the tax credits. It's on their website as an amendment to the original law. Larue's post quoted part of it.