Adoption Credit - Year of Arrival or Finalization?: Korea Adoptive Families Adoption Group Discussion Topic

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Adoption Credit - Year of Arrival or Finalization?

Posted by shw104 to Korea Adoptive Families on Apr 02, 2012 at 3:43pm | 2 Comments | Post a reply

Hi everyone…

Has anyone had any luck getting the adoption credit (2010/2011) approved on the year of arrival in lieu of the year of finalization (the following year)?

My son arrived in 2010 (from Korea) and we received our final decree in early 2011. I�ve been told that we could have filed for the credit in 2010 using his IR4 Visa.. Any truth to this?

>> Rev Proc 2005-31, Sec 5.01(2)(b) states: Children who receive an IR4 visa (guardianship or legal custody). The Service will not challenge a taxpayer�s treatment of the adoption of a child who was subject to a guardianship or legal custody arrangement and who receives an IR4 visa as final in the taxable year in which a home state court enters a decree of adoption.

I�m told the difficulty stems from Korea being a non-Hague country. I�m not a tax expert but they seem to be giving conflicting information as well. It would make sense to have the credit on the year of his arrival.

Thanks for the assistance..
Scott

Replies

Hi Scott;
We brought our son home from Korea in 2010 as well but also finalized his adoption that same year (and received the refund after a long, long wait and had to send in more paperwork after we filed).

I looked up the information from the 2010 i8839 and found this: “If the eligible child is not a U.S. citizen or resident, you cannot take the adoption credit or exclusion unless the adoption becomes final. IF you paid qualifying expenses in…Any year before the year the adoption becomes final, THEN take the credit in…The year the adoption becomes final.”

You can down load the 2011 PDF here: http://www.irs.gov/pub/irs-pdf/i8839.pdf

Hope this helps.
Liz

Posted by LizLee on Apr 02, 2012 at 9:48pm

Sorry, but I’m pretty sure you have to file for the credit next year. Our son came home in 2010, we finalized in early 2011 & just got the credit this tax season. You can, however, claim your child as a dependent using their ss # (you can get a temporary one).

Posted by PJMama on Apr 04, 2012 at 1:52am