Every year, about this time until Tax Day in April, we hear from adoptive families who want advice on Adoption Tax Credit.
This time of year, in particular, we hear from new parents who want to know: “We have not finalized our adoption yet, but want to claim our baby on our taxes. With tax day approaching, we wanted to know how we can go about filing our taxes when we don’t have a social security number for the baby yet.”
This is a very popular question. Adopted infants typically don’t have a social security number until after finalization has occurred. The attorney who is finalizing your adoption is actually the one who applies for a social security number along with the final amended birth certificate. This will not be done until after the finalization court hearing has occurred. Since you do not have these items yet, you or your accountant and/or tax representative can apply for a temporary tax identification number for the baby. You can then file your taxes with that number.
Here is a link for information about obtaining a temporary tax ID number.
And this link is for the tax credit form, which is also helpful when preparing your taxes.
You can find more information about the way that adoption tax credits work on our website. And for more resources on Adoption Tax Credit, check out Creating A Family’s radio show on Adoption Tax Credit from last week and their article about the Future of the Adoption Tax Credit, written in August. Adoptive Families also has a helpful article with a general overview on adoption tax credits. Though these are great ways to learn more about the tax credit, be sure to seek the assistance of a qualified tax professional for more specific information for your family.
Best of luck with the process this tax season!
And just a quick reminder to current families, who are active and waiting for placement: Send us the front page of your federal tax return after completion because we always need the most current copy of these on file!
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