"Taxpayers who adopt a child with special needs are allowed to claim the full amount of the credit regardless of actual expenses paid or incurred in the year the adoption becomes final (Code Sec. 36C(a)(3).
Wouldn't it be nice if they extended this very worthy credit for special needs kids? I have a client who adopted three in 2005 and never had a problem with the credit which we carried forward to 2011 which was their fifth and final year. In 2011, they had an awful time getting their refund and exchanged paperwork for several months before they finally got their credit in Nov. Personally, I thought the "old" way of not refundable was a much better plan. It just wiped out their tax liability. However, I don't get to make the laws.