2021 ProSeries Adoption Credit Calculation

Forum|Forum|3 years ago
January 7, 2023
1 reply
10 views

Taxpayer adopted a child in 2021. Child was born in January 2003, so child reached age 18 in 2021.Adoption was final in June 2021.

When I initially prepared the return, ProSeries did not allow an adoption credit.

Some time after the return was submitted, I received a ProSeries update that allowed the adoption credit. I believe this is incorrect, because the adoption was final AFTER the child turned 18. ProSeries only asks about the YEAR the adoption was final, not the DATE the adoption was final. It seems to me that ProSeries should ask for the date adoption was final, then compare it to the child's date of birth to determine eligibility based on age.

Anyone else encounter this? The current 2022 version of ProSeries has this same worksheet that only asks you to enter the year the adoption became final on the Adoptive Child Worksheet.

ProSeries Professional

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BobKamman

Level 15

Where do you find that the adoption needs to be final before the child reaches age 18?

I read Section 23 to require only that the expenses be incurred before the child reaches age 18. And, that could include expenses incurred in 2020.

When were the adoption proceedings started? Did Covid delay them in 2020?

F

FrankKAuthor

Level 4

Page 1 of IRS Instructions for Form 8839: "An eligible child is: Any child under age 18. If the child turned 18 during the year, the child is an eligible child for the part of the year he or she was under age 18."

U.S. Master Tax: "Eligible Child and Special Needs Child An eligible child for the adoption credit is an individual who has not attained the age of 18 as of the time of the adoption, or who is physically or mentally incapable of caring for himself or herself."

Quickfinder: “If the child turns 18 before the adoption is finalized, only expenses incurred before the child turned 18 will be eligible for the credit.

In this particular case, all of the adoption expenses were incurred after the child's 18th birthday. No COVID delay.

T

TaxGuyBill

Level 15

@FrankK wrote:

In this particular case, all of the adoption expenses were incurred after the child's 18th birthday. No COVID delay.

Maybe I'm misunderstanding your situation, but if the expenses don't qualify, why are you entering those expenses in ProSeries?

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