Take Adoption Credit With No Qualified Expenses for “Special Needs” Baby?

Learn more about the adoption tax credit by watching this SlideShare presentation.

Learn more about the adoption tax credit by watching this SlideShare presentation.

I was under the impression that my family couldn’t take the adoption credit because we didn’t have any qualified expenses during our adoption from foster care, but then I read this:

Since 2003, families who adopted a child with special needs from foster care could claim a federal adoption tax credit even if they had no adoption expenses. Children who receive adoption assistance/subsidy benefits are considered children with special needs. Other adoptive families are also eligible for the credit, but must have (and be able to document, if requested by the IRS) qualified adoption expenses.

NACAC | Adoption Tax Credit

When we went through our classes I remember the social worker saying that, in our county, special needs also included children of color. Does that means that we can take the federal adoption credit though we had no qualified expenses? Does special needs in our county qualify as special needs to the government?

Here’s what I found on the internet:

adoption-tax-credit-2013-9-638

adoption-tax-credit-2013-11-638adoption-tax-credit-2013-18-638 adoption-tax-credit-2013-21-638adoption-tax-credit-2013-22-638adoption-tax-credit-2013-24-638adoption-tax-credit-2013-25-638

 

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4 thoughts on “Take Adoption Credit With No Qualified Expenses for “Special Needs” Baby?

  1. Those slides may be outdated. Talk to an actual CPA, or check out the Creating a Family web site for up-to-date information about the Adoption Tax Credit. I believe you no longer have to paper file, for example.

    If you adopted from foster care, you can claim the entire credit, even without expenses. There is also a California state credit that you may be able to claim. Now, it’s a credit against tax liability, which means that you won’t necessarily get $13,000 back on your taxes, but it should provide you with a nice refund nevertheless.

    • I didn’t know that we’d be able to take the credit at all, so I’m thrilled. My taxes are a bit complicated because of the business and whatnot, but I’m looking forward to having some kind of deduction. =)

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