Adoption credit - Stepchild

[BillG]

Can a husband or wife adopt the stepchild from a spouse's pervious marraige and claim the adoption credit?

[gkaiseril]

From the IRS Topic 607 - Adoption Credit

http://www.irs.gov/taxtopics/tc607.html

"An eligible child must be under 18 years old, or be physically or mentally incapable of caring for himself or herself. The adoption credit or exclusion cannot be taken for a child who is not a United States citizen or resident unless the adoption becomes final. A taxpayer also may be eligible to take an increased credit or exclusion for expenses related to the adoption of a child with special needs if the child otherwise meets the definition of qualifying child, is a United States citizen or resident and a state determines that the child cannot or should not be returned to his or her parent's home and probably will not be adopted unless assistance is provided. The credit and exclusion for qualifying adoption expenses are each subject to a dollar limit and an income limit."

The credit is to promote the adoption of children that are hard for state agencies or adoption agencies to place in a home environment.

Will the child be returned to the parent's home?

Yes, because one of the child's parents is child's current parent.

[hrbwmg]

So this means.....

Adoption requires the parent to remove the child from its current habitat and move to a new home. Obviously you cannot do this with a step child. Is that right??

[Koss]

Answer

From the instructions for Form 8839:

Qualified Adoption Expenses

Qualified adoption expenses are reasonable and necessary expenses directly related to, and for the principal purpose of, the legal adoption of an eligible child.

Qualified adoption expenses include:

Adoption fees,

Attorney fees,

Court costs,

Travel expenses (including meals and lodging) while away from home, and

Re-adoption expenses relating to the adoption of a foreign child.

Qualified adoption expenses do not include expenses:

For which you received funds under any state, local, or federal program,

That violate state or federal law,

For carrying out a surrogate parenting arrangement,

For the adoption of your spouse's child,

Paid or reimbursed by your employer or any other person or organization, or

Allowed as a credit or deduction under any other provision of federal income tax law

[emphasis supplied].

BMK