Adoption Credit for Special Needs Child - Will This Delay Our Refund?

I claimed the adoption credit last year, filed on February 3rd, 2023. It absolutely delayed my refund. The adoption credit requires Form 8839, which is one of the forms that triggers manual review. My refund wasn't issued until April 17th, 2023 - that's 73 days after filing. The IRS doesn't publicly state this, but adoption credits almost always get additional scrutiny because of the high dollar amount ($15,950 for 2024 tax year). Make sure you have all documentation ready if they request verification.

I'm in the same boat right now and panicking about delays! Did you submit all your court documents with your return? Did they still ask for more? I've been checking WMR obsessively but my bars disappeared last week and now it just says "still processing" - what does that even mean?? I found https://taxr.ai super helpful for decoding my transcript - it explained that my 570 code was just part of the verification process for the adoption credit and gave me an estimated completion date. Isn't it frustrating how the IRS makes these special credits so complicated?

I've claimed the adoption credit twice over the years, and both times I had to deal with verification delays. The first time in 2019, I waited nearly 3 months with zero communication from the IRS. The second time in 2022, I was smarter - I used Claimyr (https://youtu.be/_kiP6q8DX5c) to actually get through to an IRS agent after waiting 6 weeks. The agent confirmed my return was in the special handling department and expedited it once I explained our situation. Had my refund within 10 days after that call.

Be extremely careful with documentation. The adoption credit is like a red flag waving in front of the IRS bull. I claimed it in 2021, thought I had everything perfect, but still got audited. They requested documentation I didn't even know I needed, and my refund was frozen for 5 months. The process is like trying to navigate a maze blindfolded - you think you're doing everything right until you hit a wall.

I was shocked by how the adoption credit process works! Here's what happened: 1) Filed in early February 2023 with all documentation, 2) Got a 570 code on my transcript by mid-February, 3) Received a letter requesting verification on March 3rd, 4) Sent everything back March 10th with certified mail, 5) Waited until April 15th with no updates, 6) Finally got my refund on May 2nd. That's nearly 3 months! And I had submitted everything correctly the first time! Make sure you keep copies of EVERYTHING you send them.

Does anyone know if the special needs determination makes the verification process faster or slower compared to regular adoption credits? My sister claimed a regular adoption credit last year and got her refund in 6 weeks, but it sounds like the special needs version might be more complicated?

I've been tracking adoption credit processing patterns for a few years now. The key factors affecting processing time are: 1) When you file (earlier = longer wait, counterintuitively), 2) Whether you paper file or e-file (paper is significantly slower), 3) Whether you're claiming other credits simultaneously, and 4) The completeness of your documentation. Are you e-filing or paper filing? And are you claiming any other credits besides the adoption credit?

I went through this exact situation in 2023 with our special needs adoption. Filed February 15th, got the dreaded 570 code by early March, and didn't see our refund until May 8th - almost 3 months! The IRS requested additional verification of our state's special needs determination even though I included it with the original filing. What really helped was calling the Taxpayer Advocate Service around week 10 when it became clear this was affecting our ability to pay for our child's therapy appointments. They expedited the final review and we had our refund within 2 weeks of that call. Don't hesitate to reach out to TAS if you're experiencing financial hardship due to the delay - that's exactly what they're there for.