[ermiller]

we had the same thing happen to us a couple of years ago:

Here is what my uncle who is a cpa/tax guy said:

You may take the credit in the year the adoption was final or if the adoption does not finalize then it is the year after the year in which the money was paid. So if you paid money in 2005, but did not have an adoption that finalized in 2005, you can take the credit when you file your taxes for tax year 2006. So not this year's taxes but next. Now if you paid the money in 2004, and did not have an adoption that finalized in 2004 or 2005 you can take the credit in the tax year 2005.

Be aware that when you have an adoption that finalizes, the fees and money you paid for the failed adoption are deducted from the adoption that finalizes credit. THEY ARE CONSIDERED ONE ATTEMPT TO ADOPT. So this money comes off the $10,390 credit as well as what ever fees you pay for the next atttempt.

Does that make any sense?
Erin

(There is another thread on here about the tax deduction , actually several. I'll see if I can find them because they have additional advice!)