when is adoption final with international adoption??

It took some time for the IRS to clarify its position on this issue. However, its position is now clearly stated on the tax credit forms. The bottom line is that the IRS follows the USCIS definition of a full and final adoption. If a child comes home on an IR-3 visa, meaning that all relevant parents saw a child before a final decree of adoption was issued in the foreign country, he or she is considered to have had a full and final adoption in the foreign country. For example, he/she becomes a U.S. citizen as soon as he/she enters the U.S. The tax credit is taken in the year the child enters the U.S. Readoption or acquisition of state "recognition" of the foreign adoption is optional, unless the state requires it. If a child comes home on an IR-4 visa, meaning either that all relevant parents did not see the child prior to the granting of an adoption decree by the foreign country, or that the child is being brought to the U.S. under a decree of guardianship for adoption here (the Korea model), the adoption is NOT considered full and final when the child enters the U.S. The child does not become a U.S. citizen upon entry, and the parents cannot take the tax credit at that point. The parents must adopt/readopt him/her in their home state or, if the state allows it, the parents may obtain a "recognition" of the foreign adoption from the state. Once the readoption order or recognition document is signed, the adoption is considered full and final. The child becomes an automatic citizen. And the parents may apply the adoption tax credit in the year the readoption/recognition is complete. Sharon