Special Needs Adoption Credit (code 41)
You may claim a refundable credit of $1,000 for a special needs child you adopt for whom the adoption order was issued by a court of competent jurisdiction in Utah or another state, or a foreign country. You must be a resident of the State of Utah on the date the order is issued. If the adoption is made by a foreign country, the adoption must be registered in accordance with UC §78B-6-142.
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 a physical, emotional, or mental disability; or
- be part of a sibling group (two or more persons) placed together for adoption.
The credit may not exceed $1,000 per taxable year, regardless of the number of qualifying special needs children adopted during the year.
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.
There is no form for this credit. Keep all related documents with your records.