Adopted Child from Another Country

[Jiggers]

I have never encountered this before.

New client has adopted a child from another country, Russia, in 2006. I am unsure of the date that the child was adopted.

Child was born in 2005.

Is there anything special that I need to know:
about claiming dependent for 2006?
about filing head of household for 2006?
about child tax credit for 2006?

[oceanlovin'ea]

Adoption credit

Don't forget the adoption credit. That is a big help.

Linda F

[taxmandan]

Foreign Adoption

There are two types of foreign adoption processes, you need to know which one applies to this adoption. It has to do with when your client can claim the adoption credit/expenses. I'm not in my office so I can't look it up on the one I handled two years ago, but I think TTB had that information in the adoption section.

Daniel

[Jiggers]

Foreign Adoption

As a follow-up, the official adoption date is 8-29-2006.

[JAinNC]

Since the adoption of the foreign child was final in 2006 all qualified expenses from 2006 and prior years to adopt that child may be claimed in 2006. Expenses paid after the fianl yr of adoption are deducted in the year paid. Can't use the same expenses more than once, whether on dection or credit.

See Tab 11 of TheTaxBook

Read instructions for your particular situation.

[Jiggers]

Adoption Expenses

Due to income of taxpayer, $220,000, AGI wipes out any use of adoption expenses.

I was more interested in:
Filing Status - Since less than half year in home, filing single.
Dependency - Yes

[JAinNC]

Yes as if born at time agency placed even prior to adoption for that year. But in this case since it is foreign - the child probably did not come to US until adoption final.

[Gene V]

Due to income of taxpayer, $220,000, AGI wipes out any use of adoption expenses.

I was more interested in:
Filing Status - Since less than half year in home, filing single.
Dependency - Yes

An adopted child is always treated as the taxpayer’s child.

Exception to time lived with the taxpayer. A person is considered to have lived with the taxpayer for all of 2006 if the person was born or died in 2006.

I’m thinking, since the adopted child did not live with the taxpayer for more than 6 months. He doesn’t qualify for the dependency test or H of H test.

[John of PA]

Adopted same as Biological

An adopted child is not subject to these test, just as a Child born in December is not (as long as the child is not being deducted by someone else, such as foster parents).

[hyacinth]

adopted same as born

Where are you finding that the residency rule does not apply to claiming an adopted child as a qualifying child for H/H and Dependency? I didn't find it in the list of exceptions.

[hyacinth]

adopted vs biological

Even your biological child has to meet the residency test unless they meet certain exceptions. Are you calling the period before adoption a temporary absence? If being adopted was an exception to the residency rule don't you think Pub 17 would list it since they list the other exceptions.

[Jiggers]

Adopted Child, what I found

I used CFS Tax Tools to arrive at the following:

1. Not a "Qualifying child" because the child did not live the taxpayer for more than have the year. This question just followed the one about being adopted.

2. A dependent. Even though not living with the taxpayer for more than half the year, the taxpayer provided over half of the dependent's support.

3. Filing status is single.