Adoption credit c/f for HOH, then marries

[RJM]

A woman HOH adopts children in 2003 and 2004, and has adoption credit carryforward of $7500 for 2005. But she gets married January 2005. I don't know how to handle the carryforward for the couple's 2005 return.

I cannot find any relevant rules or regs, but my guess is that if they file MFJ, they can't use up the carryforward, because it will partly benefit the husband who was not entitled to the tax benefit when it was created.

Thinking she must file as HOH or MFS to allow use of the carryforward, but I have no support for this. Any ideas? Can I use the carryforward on a joint return for 2005? Thanks for your help. -Bob

[GIMoe]

A woman HOH adopts children in 2003 and 2004, and has adoption credit carryforward of $7500 for 2005. But she gets married January 2005. I don't know how to handle the carryforward for the couple's 2005 return.

I cannot find any relevant rules or regs, but my guess is that if they file MFJ, they can't use up the carryforward, because it will partly benefit the husband who was not entitled to the tax benefit when it was created.

Thinking she must file as HOH or MFS to allow use of the carryforward, but I have no support for this. Any ideas? Can I use the carryforward on a joint return for 2005? Thanks for your help. -Bob

I would file them as MFJ and take the carryforward credit. Getting married does not remove her right to get the full benefit of that credit. They should file MFJ.

[Jade06]

She can't file as HOH if they lived together six months or greater. Which leaves MFJ or MFS. Seeing as which you need to use an 8839 with MFS it shouldn't be a problem, keep in mind using MFS might disqualify them for other credits to which they might qualify for if they filed MFJ. In my opinion they should file MFJ.

Disclaimer:: my opinion is mine ie I"m human and inclined to err ::

Jade!!

[RJM]

Thanks GI & Jade..

I know that HOH filing is wrong!.... Found indirect support for using the c/f in a MFJ return, without any adjustment. Reg Section 1.170A-10(d)(4)(ii), addressing charitable contribution c/f's, says MFJ can fully use the c/f without adjustment which was generated by Single or MFS taxpayers. This is not the same as a credit c/f, but close enough. -Bob