Claim as a Dependent?

To your specific question, to claim a person as a dependent there are 2 approaches: 1. A Qualifying Child - Must be your child (adopted qualifies, but only if finalized), under age 19 (24 if full time student) at the end of the year, live with you as his/her principal place of abode for more than 1/2 of the year, and the child doesn't provide more than 1/2 of their own support. (Based on your post, it doesn't look like the child qualifies yet.) 2. A Qualifying Relative. In spite of the term, it includes an individual that is a member of the taxpayer's household and has the same principal place of abode as the taxpayer, but does not have to be an actual relative of the taxpayer. [Code Sec. 152 (d) (2)] The child can't have more than $3,400 of income [2007 limit], you have to provide over 1/2 of the child's support, and the child can't be anyone else's Qualifying Child. (Based on your post, as long as the birth mother doesn't claim the child, you should be able to.) _____________________________________________ Some references to the tax benefits - 1. The Adoption tax credit is handled on Form 8839, available through irs.gov. The form link: The instructions link: The credit has a maximum limit, currently $11,390 for 2007. It is a nonrefundable credit, meaning it is further limited to your Federal income tax liability. Any unused amount can be carried over for up to 5 years and used against your taxes in those future years. How and when you claim the credit is based on whether the adoption is domestic or foreign, and whether it succeeds or not. 2. To claim any tax benefits the child needs to have a Tax Identification Number (TIN). There are 3 options, in order of preference - a. Obtain a Social Security Number (SSN) using Form SS-5 filed with the Social Security Administration. This requires proof of US Citizenship or Permanent Resident Alien status, usually the birth certificate and court documents. This is the best option, as the child will need a SSN for the future in any case. b. Obtain an Adoption Tax Identification Number ATIN). If you can't currently get a SSN (such as the birth parent isn't cooperating with your getting the birth certificate) the IRS will issue an ATIN if you file Form W-7A with the required documents. The number is good for 2 years and can be extended by providing evidence that the adoption is in progress but not yet complete. c. Obtain an Individual Tax Identification Number (ITIN). These are issued by the IRS, normally to nonresident aliens who have business or investment ties to the United States that require them to file returns and pay taxes, but don't have an immigration status that would allow them to get a SSN. This normally wouldn't apply for a domestic adoption, and may not for a foreign one either. With a SSN you can obtain all the child tax benefits, including the exemption, child credit, child care credit, adoption credit and earned income credit. An ATIN or ITIN does not allow the earned income credit. For that you would have to amend your return(s) later, after the child has a SSN. Hope this helps.