Can a tax credit be done in the state of PA.? can a tax credit be done if the child will adopted in 09 for 08.

Question

I'm in the process of adoption, the child is from jamaica. Can a tax credit be done for adoption in the state of PA? Can I use any deductions for the 2008 tax year if he will be arriving in january 2009. I have collected all receipts so far, but wanted to know if I'm eligible for the tax credit for my return in 2009.

Answer 1

The tax credits are federal, so it doesn't matter where you live.  There aren't adoption credits for PA state tax.

Answer 2

I doubt if the state of PA has any specific credits for adoption, but your Federal return will give you a good credit for adopting.  

For a child adopted from outside the US, you only get the credit if and when the adoption becomes final (when you try to adopt a US citizen you get the credit even if the adoption never becomes final).  You take the credit in the tax year that the adoption becomes final.  So if the adoption becomes final in January 2009, you take the credit on your 2009 tax return which you will file in the spring of 2010.

Keep all of your receipts.  It does not matter what year you incurred the expenses - in the case of the adoption credit, you  turn in all years worth of expenses in the same year - they year the adoption becomes final.