In which scenario is the taxpayer ineligible for the Adoption Credit?

The Adoption Credit is a tax benefit available to taxpayers who incur expenses related to the adoption of a child. However, certain scenarios can result in a taxpayer being ineligible for this credit.

In the scenario where a taxpayer adopts the daughter of a spouse from a previous marriage, the taxpayer is not eligible for the Adoption Credit. This is because the Taxpayer Relief Act specifies that the adoption must involve a child who is not the biological child of the taxpayer or the taxpayer's spouse. When the child is the biological child of one spouse, adopting that child does not qualify for the credit, as the child is already considered part of the household.

Other scenarios listed, such as adopting a 25-year-old special needs person, a second child, or the son of a domestic partner, generally do not carry the same restrictions and could still qualify for the credit based on statutory guidelines regarding age and the nature of the adoption.