Substantiation Requirements
Taxpayers claiming the adoption credit for 2012 or later years are not required to attach a copy of substantiating documentation to their returns. Instead, the documentation should be retained by the taxpayer. The following documents are the types of documents that an adopting taxpayer should retain in case of IRS inquiry:
For Domestic and Foreign Adoptions That Have Been Finalized
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If finalized in the United States, an adoption order or decree.
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For a foreign adoption governed by the Hague Convention and finalized in another country, (1) a Hague Adoption Certificate (Immigrating Child), (2) an IH-3 visa, or (3) a foreign adoption decree, translated into English.
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For a foreign adoption from a country that is not party to the Hague Convention, (1) a foreign adoption decree (translated into English), or (2) an IR-2 or IR-3 visa.
Information to be Included
An order or decree should include information that establishes that the taxpayer’s adoption of the eligible child has been finalized and the date finalized. Redaction of sensitive personal information is permitted, but the IRS may require an unredacted copy of the document if needed to substantiate the claim for the credit.
Adoptions of Special Needs Children
In addition to the documentation listed above, a taxpayer adopting a special needs child should retain a copy of the state determination of special needs for that child. Redaction is permitted but IRS may still require an unredacted copy.
For Domestic Adoptions That are Not Final
One of the following:
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An adoption taxpayer identification number (ATIN), obtained by the taxpayer for the child, included on the taxpayer’s return
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A home study completed by an authorized placement agency
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A placement agreement with an authorized placement agency
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A document signed by a hospital official authorizing the release of a newborn child from the hospital to the taxpayer for legal adoption
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A court document ordering or approving the placement of a child with the taxpayer for legal adoption, or
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An original affidavit or notarized statement signed under penalties of perjury from an adoption attorney, government official or other person, stating that the signor (a) placed or is placing a child with the taxpayer for legal adoption, or (b) is facilitating the adoption process for the taxpayer in an official capacity, summarizing the facilitation.