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Posted by Harlan Lunsford on March 10, 2007, 2:30 am
Please log in for more thread options PaulTry wrote:
> Taxpayers adopted two children (brothers), US citizens,
> adoption final 12/28/2006. Child 1 was born in 2005 and
> lived with taxpayers since 12/06/2006. Child 2 was born
> 08/29/2006 and lived with taxpayers since birth. Both
> children meet the Pub 17 definition of
> dependents/exemptions.
>
> Per Pub 972, a qualifying child for purposes of the child
> tax credit is a child who:
>
> 1. Is your son, daughter, stepchild, foster child...,
>
> 2. Was under age 17 at the end of 2006,
>
> 3. Did not provide over half of his or her own support for
> 2006,
>
> 4. Lived with you for more than half of 2006 (see Internal
> Revenue Service exceptions to time lived with you below),
> and
>
> 5. Was a U.S. citizen, a U.S. national, or a resident of the
> United States. If the child was adopted, see Adopted child
> below.
>
> Adopted child. An adopted child is always treated as your
> own child. An adopted child includes a child lawfully placed
> with you for legal adoption. If you are a U.S. citizen or
> U.S. national and your adopted child lived with you all year
> as a member of your household in 2006, that child meets
> condition (5) above to be a qualifying child for the child
> tax credit.
>
> Exceptions to time lived with you. A child is considered to
> have lived with you for all of 2006 if the child was born or
> died in 2006 and your home was this child=92s home for the
> entire time he or she was alive. Temporary absences for
> special circumstances, such as for school, vacation, medical
> care, military service, or detention in a juvenile facility,
> count as time lived with you. There are also exceptions for
> kidnapped children and children of divorced or separated
> parents.
>
> Both children meet qualifying conditions 1, 2, 3 and 5.
>
> Child 2 appears to meet the exception to condition 4 in that
> "the child was born...in 2006 and your home was this
> child=92s home for the entire time he or she was alive."
>
> I can't make Child 1 fit that exception. To the contrary,
> though the "Adopted child" paragraph appears to apply to
> non-US citizen adoptees, it may specifically require that
> the "...adopted child lived with you all year as a member of
> your household in 2006..." (though this conflicts with the
> "more than half of 2006" rule in condition 4.)
>
> Any agreement or disagreement with my take on this? Any
> knowledge of rev regs or rules that address the situation
> and would qualify Child 1 for the credit?
>
> TaxAct software disallows the additional child tax credit
> for both children when correct dates of birth and months
> living with taxpayers (1 for Child 1, 5 for Child 2) are
> input. Changing 5 months to 7 or more for Child 2 adds the
> $1,000 credit. If, in fact, Child 2 qualifies for the
> credit, it appears the software doesn't take date of birth
> into account.
That's why you have to override and use 12 months instead of
4 or 5, whatever.
ChEAr$,
Harlan Lunsford, EA n LA
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