[randytenn]

Someone asked this question on our region specific Yahoo board. They were doing their taxes using software, and were asked if the child lived with them for more than half the year. Since the adoption was finalized after August, they replied no, and were not allowed to take the deduction for the dependent.

I always assumed that adoption was like birth, and that as long as it occurs before 12/31, you got the whole year. But, darned if I can find anything from the IRS website supporting this assumption.

Anyone have the publication or rule that supports this?

[kretzklan]

I don't have the publication...but I'll get it from my accountant. You are correct...as long as the adoption finalized before December 31...you get the dependent credit for the whole year (just like a birth)...

I'll call him and ask for the "statute number" or something.

[Vicki H]

I agree, we completed Alex's adoption in November and we were allowed the dependant credit for that year.

Vicki

[pwnort64]

My guess is that they answered a different question incorrectly to be even be asked this question.

[JLW99]

My guess (and I am sure the CPA's out there can clarify!) is that they were incorrectly answering a question devised to determine a "custodial parent". This question is asked when parents don't live together and share custody, to see which parent can claim the child on their returns. The parent who has the child "more than 6 months out of the year" is considered the "custodial parent." This has nothing to do with how long your child has been in your home whether by birth or adoption, as babies born on 12/31 are good news for bio parents since they can be claimed for that year's tax return, and not on a pro-rated basis.
Hopefully this family can file an amended return and correct this, as it seems they have some $$ due them.
Jen

[randytenn]

That's what I assumed, as well, but I still can't find anything to support the assumption. The requirement test listed by the IRS for dependents include residency for more than half the year.

I'm still looking for the specific rules that override this.

[Teri M]

our adoption of Alex was completed in Nov 2004 - our acct was so happy for us - Finally a dependent he told us...we got the whole thing...plus we got adoption tax credit (we only took 1/2 - then use the other 1/2 this year)