Special Needs Adoption Credit (code 41)
A taxpayer who adopts one or more children with special needs during the taxable year may claim a refundable credit of $1,000. You may only claim this credit if you were a Utah resident on the date the adoption order is issued. The adoption order must be issued by a court of competent jurisdiction in Utah or another state, or in a foreign country. If the adoption is made by a foreign country, the adoption must be registered in accordance with UC §78B-6-142.
If the adoption order is issued by a court in Utah or another state, the credit may only be claimed the year the adoption order becomes final. If the adoption order is issued by a foreign country, the credit may only be claimed the year a court of competent jurisdiction in Utah orders the state registrar to file the adoption order issued by the foreign country.
The credit may not exceed $1,000 per taxable year, regardless of the number of qualifying special needs children adopted during the year.
To claim this credit, the child must meet one of the following conditions:
- Be five years of age or older,
- Be under the age of 18 with physical, emotional, or mental disability; or
- Be a member of a sibling group (two or more persons) placed together for adoption.
The credit is claimed by entering the allowable credit on Utah TC-40A, Part 5, using code 41.
There is no form for this credit. Keep all related documents with your tax records.