Define "adoption became final" in IRS terms...help

[julesannap]

Hi gang,

I travelled to China without my husband in January 08 and came home with my baby on Feb. 1, 2008. She did not automatically become a citizen because of the IR4 visa. According to our local agency, we had a final foreign adoption decree and we "re-finalized" her adoption finally on 02/12/09 (after a bunch of local bureaucratic junk that slowed it down a couple months). We have her SS# and passport, but no COC yet.

My question: can we claim adoption credit for Molly for 2008? All the IRS info says is you qualify "in the year the adoption became final". This has been a LONG road, with expenses beginning in 2005 and we were really hoping to get some of it back this tax time. Does a foreign adoption decree suffice as "final" for tax purposes?

I guess I may have to call IRS, but hoping someone out there can help!

Thanks to all of you in advance!

Julie
DS 13
DS 9
DD 2

[LeighW]

Unfortunately, your finalization date is in 2009. You cannot claim the credit in 2008.

We've adopted twice from Korea and are in the same boat. We just claimed our first credit in 2008 for our older son who came home in 2007.

[HLLB]

Actually, I disagree. The adoption was finalized in China in 2008. Re-adoption was in 2009...but you are not required to re-adopt (although it's recommended). If you have a final adoption decree from China in 2008, I think you're good. Korea is different because an adoption is not performed in Korea - only here.

[VN2NJ]

Hi gang,

I travelled to China without my husband in January 08 and came home with my baby on Feb. 1, 2008. She did not automatically become a citizen because of the IR4 visa.

It was not finalized in country because only one parent was present in China. If the child travels on a IR3 visa that means it is finalized. In this case, the IR4 visa means it is not finalized and the child is not a US citizen upon arriving in the US.

[julesannap]

Actually, I disagree. The adoption was finalized in China in 2008. Re-adoption was in 2009...but you are not required to re-adopt (although it's recommended). If you have a final adoption decree from China in 2008, I think you're good. Korea is different because an adoption is not performed in Korea - only here.

This is exactly what I'm wondering. We got the same decree that our friends that travelled as a couple got. Their daughter did become a U.S. citizen when she touched U.S. soil, but isn't citizenship a different discussion? And I do know that we weren't required to re-finalize...though we didn't debate for a second our wanting to do so.

Anyone else have a vote? I have received a couple of PM's from people who say they did claim part of the credit before their adoption was finalized (I'm wondering "re-finalized"??

So I'm off to call IRS and I'll let you all know what they say.

Julie

[HLLB]

Oh, whoops, sorry! I didn't realize that was an option in China

[LeighW]

Oh sorry, I didn't realize there is an exception option. I was thinking you had to wait until readoption in the US, like finalization in a Korean adoption if only one parent traveled to China.

Malie is correct.

[julesannap]

Wow, Malie, how did you come up with that so quick? I was having no luck on IRS.gov or reaching a real person by phone. You should consider a career in research or law! Thanks a million!

Julie

[tyjac]

Julie,

We were in the same situation. Only my DH traveled to bring our son home in 2008, but we have not finalized here yet, we will next week. Our accountant advised us to go ahead and apply for the credit with the ATIN # and we should be all set due to the reasons Malie stated. Not many tax professionals seem to be aware of this which is causing some families to have to wait longer.