Adoption Credit

[GTS1101]

My clients adopted from Russia and all adoption expenses were final in 2008. They had 61,000 of adoption expenses. I am going claim the credit of 11,650 for each of the kids as they adopted two kids. Part of the credit will be used in 08 and the rest carryforwarded to the future. My client called and spoke with the IRS and they said in addition to claiming 11,650 credit there was another credit of 5,000 per child. I believe that is incorrect and as usual with the IRS you get a different answer each time you speak with someone or the wrong answer. I could not find anything in the tax code relating to an additional 5,000 credit. I know that you can claim 11,650 for your own expenses and those on behalf of your employer but that is all I see in the tax code. Just wanted to verify to assure my client there is no additional credit of 5,000.

Thanks!

GTS1101

[Koss]

Adoption Credit

There is an "additional credit" available, in some cases, that is applicable to the adoption of a foreign child. It is probably not applicable to your client's fact pattern.

See the instructions for Form 8839. Specifically, read page 2 of the instructions, at the bottom right hand corner of the page, under "Special Rules."

BMK