NOTE:  This information is provided for your convenience.  It is NOT tax advice. To determine your eligibility for these credits please consult with IRS or your accountant. 

Under certain circumstances, Foster Children can be considered dependents.  Please refer to IRS publication 501 for further details.

NACAC has made a major update to the adoption tax credit and a small change
from last year's information on the fact sheet related to adoption subsidy
and claiming children as dependents.

You will find both documents attached to this e-mail and you will also be
able to link to them (and lots of other great information!) at
www.nacac.org.

Tax Credit
http://www.nacac.org/pub_taxcredit.html

Adoption Subsidy and Taxes
http://www.nacac.org/subsidyfactsheets/taxes.html

The adoption tax credit flier covers amending tax returns this year.
Families who did not take the adoption tax credit in 2003 can amend their
taxes until April 15, 2007.  We provide information on figuring out if a
family should amend their tax and then what they will need to do if they
amend their taxes.  We have also added information about the Additional
Child Tax Credit which is a refundable credit if you are unable to take the
full amount of the Child Tax Credit.

The fact sheet on adoption subsidy, taxable income, claiming children as
dependents and the child tax credit has been update very little. We have
taken out the specific references to tax year 2005 and we have added the
same little information that encourages families to make sure they check out
the Additional Child Tax Credit as in the adoption tax credit flier.

Thanks to the North American Council on Adoptable Children
(NACAC) for providing this timely, updated information.