Adoption Credit

[S T]

Not for 2010, but possible for 2011

I have not filed for this in years

Grandparents took custody of two Grandchildren in 2008 via State (and in Foster Care Program assigned to Grandparents) Taxpayer Grandparents receiive a small amount monthly from foster Care for support of Grandchildren

Grandparents have filed the petition for adoption - but has been on terminal hold due to all of the legal rights of the parents
Last week the court "terminated the parental rights" of the father and mother
In 2011 - it will take approximately 4-6 months to process the paperwork for adoption already in place - the Grandparents will "legally adopt" the grandchildren.

Children are under the age of 18 - parental rights have been terminated by the State/Court Order

These taxpayers as grandparents would then qualify for the Adoption Credit in 2011?

Thanks,

Sandy

[oceanlovin'ea]

Pub 17 pg 250

talks about the adoption credit. It doesn't specify anywhere that grandparents wouldn't qualify for the credit.

I think they would have to make sure to ask lawyer or court about whether the children are special needs children. One of the tests is that they are part of a sibling group. It is harder to get 2 or more children adopted together so they get the special needs determination.

Hope it works out for them.

Linda

[veritas]

Are the grandparents

on social security?

If so I would have them check to see if the children qualify for benefits once the adoption is final.

[S T]

Special Needs

Special Needs is what confuses me!

The 2 grandchildren are a sibling group

Grandparents are young - and still working

Grandfather has not retired yet, but will maybe in the next two years - so maybe after adoption they can apply for the Social Security benefit for children.

Thank Goodness, these grandparents are here for these children, These two children would be harder to place due to their age at 10 and 14, and thank goodness the State has terminated the rights of the parents (don't like to pass judgment, but the parents care would not be a nice place for these kids to be in)

I am thinking the children qualify as Special Needs, but I wish the qualifications would be better explained.

Sandy

[Edward]

Note that the maximum adoption credit (as well as the exclusion for employer-provided adoption assistance) is increased to 13,170.00 and is refundable for 2010 and 2011 and for 2012 the credit drops back to 12,170. The 13,170.00 applies to both non-special needs adoption and special needs adoption. (Source: Patient Protection and Affordable Care Act, dated 3/23/10, and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, dated 12/17/2010).

[Davc]

Special Needs is what confuses me!

I am thinking the children qualify as Special Needs, but I wish the qualifications would be better explained.

Sandy

The state makes that determination. Ask the agency.

[oceanlovin'ea]

yes

It is determined by state.

My family that have adopted children had one adoption finalized in 2010. I told him the documentation he needs. He said he has paperwork that identifies child as special needs.

So your client would get that in the adoption proceedings. But I would say an older child would be special needs since it is harder to adopt them.

Linda