Am I eligible to claim the full Adoption Credit?

kevst

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?

PamelaP

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:

https://www.irs.gov/pub/irs-pdf/i8839.pdf

Please note some of the number amounts in this publication will not be accurate as the 2024 version has not been updated yet.