[mig42]

Just wondering if adopting domestically when you can claim you tax credit.
We were under the impression that you couldn't file until after the adoption was finalized. We paid all our fees to our Agency last June but we're still waiting to be matched therefore we ASSUMED we weren't supposed to file for the tax credit yet. Were we wrong? Should we have filed this year since we paid out the money in 2007? We're scared now that we've missed the boat!!

[Acolo]

That's how I understand it, too. We adopted Ben and had finalization, everything in 2006. So, we claimed the credit for 2006 taxes (in 2007) even though we had paid some in '05.

[ProspectiveSingleMom]

That seems right. I haven't adopted yet, but the software I used to do my taxes has a question that says "Did you adopt a child in this year?" not "Did you pay fees for an adoption?"

[kindredspirit]

http://www.irs.gov/pub/irs-pdf/i8839.pdf

Here is the link to the instructions. Ask your tax accountant.

[beav]

That is right. We payed our adoption expenses in 2006 when our daughter was placed with us but did not finalize until 2007. We were unable to claim the tax credit until after we finalized which was on our 2007 taxes. We were able to do an amendment to our 2006 taxes and claim her as a tax deduction for 2006 after we finalized.

[DianeS]

The rule for domestic adoption expenses is this: You file for the credit in the year you finalize - or - in the year after you pay the expense - whichever comes first.

So, if you pay expenses in 2007 and finalize in 2007, then you get the credit on your 2007 taxes. And if you pay expenses in 2007 and do *not* finalize in 2007, you get the credit on your 2008 taxes (regardless of whether you ever finalize or not).

Hope that helps!