Adoption Credit
We adopted a child through the state department of child services (DCS) foster care system. We had no out of pocket cost. Since it was through DCS, I believe it qualifies as a special needs adoption. Am I eligible to claim the full $16,810 adoption credit even though I had no out of pocket expenses?
Answers
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Great question! If it qualifies as a special needs adoption, yes, the full credit is available without out of pocket expenses. It's important to note that according to the credit instructions:
"The state must make a determination that a child has special needs before the child is considered to be a child with special needs. A child having a specific factor or condition isn't enough to establish that the state has made a determination of special needs."
You can read more about this and other information on the special needs qualification on page 4 in the "Column (d)" instructions for the credit:
Please note some of the number amounts in this publication will not be accurate as the 2024 version has not been updated yet.
