Adoption Credit?

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  • zeros
    Senior Member
    • Dec 2006
    • 921

    #1

    Adoption Credit?

    I have a couple (not married) who adopted a child last year. They came in telling me they were entitled to a $13,000 tax credit. I am aware of the adoption credit. They did not spend ANY MONEY for the adoption. It is not a special needs child. I told them they aren't entitled to the adoption credit. Credit? Not sure why?
  • David1980
    Senior Member
    • Feb 2008
    • 1703

    #2
    Are you sure it's not a special needs adoption? Did they receive any documentation indicating that the child qualifies as special needs adoption?

    Comment

    • spanel
      Senior Member
      • Oct 2008
      • 845

      #3
      Originally posted by zeros
      I have a couple (not married) who adopted a child last year. They came in telling me they were entitled to a $13,000 tax credit. I am aware of the adoption credit. They did not spend ANY MONEY for the adoption. It is not a special needs child. I told them they aren't entitled to the adoption credit. Credit? Not sure why?
      What paperwork do they have? Why did they spend nothing? Was it through DCFS or the State? Those usually qualify automatically for the credit.

      Of course the bigger question is who actually adopted the child as they are not married (only one of them gets the credit).

      Chris

      Comment

      • TAXNJ
        Senior Member
        • Jan 2007
        • 2106

        #4
        Originally posted by zeros
        I have a couple (not married) who adopted a child last year. They came in telling me they were entitled to a $13,000 tax credit. I am aware of the adoption credit. They did not spend ANY MONEY for the adoption. It is not a special needs child. I told them they aren't entitled to the adoption credit. Credit? Not sure why?
        Why would you tell clients "told them they aren't entitled to the adoption credit. Credit? Not sure why?". !!!!!

        Think you would need to review specifics of the adoption credit and ask ciients questions first.

        Start with TTB tab 11-4
        Always cite your source for support to defend your opinion

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