[bmw68]

I can't seem to get a consistent clear answer on this question: Is the adoption tax credit available for a failed placement? We paid expenses in 2004, had a failed adoption in 2005, and are currently waiting for another match. Are we able to use the adoption tax credit on our tax return for 2005 for the money we have paid to the agency thus far, even though we are still waiting to adopt?

Thanks for any advice you can offer.

Brenda

[gigigeorge]

short answer is yes, we had a failed placement in 2005 and took the credit on 2005 taxes.

Best to ask a tax professional their opinion though.

gina
www.gtjohnson.com

[GRKinWisc]

We had a failed adoption in 2005 and have had some conflicting reports as well. We did find a tax accountant that has successfully done a failed adoption tax credit. She was awful pricey, but gave us the info that we needed to do it on our own (since she realized that we were trying to save our money for another adoption). This is what she said...
Get the 8839 adoption tax form (I think that's the corrent number??) Fill it out as much as possible with your expenses, information, etc. and put a note on it stating that the adoption was failed. You can put the expenses for the FAILED adoption only (do not put expenses for a current adoption as that will be held over for a successful one - hopefully - next year). Put the name, address, etc. of the agency or attorney that you went through. Send it in via the snail-mail as it won't work on the internet because you may or may not have a name, ss#, etc. for the child that you were adopting.

Hope this helps. We have had a local couple challenge the fact that we were told we could do this for a failed adoption. I am keeping my fingers crossed that it goes through now.

I would certainly be interested in hearing from others who have received the tax credit for a failed adoption!
Thanks!
GK in WI

[sneezyone]

My understanding was that you could claim expenses for a failed domestic adoption only, not a failed international one.

Adopting U.S. citizens or residents
"If the eligible child is a U.S. citizen or resident, you can take the adoption credit or exclusion even if the adoption never becomes final. Take the credit or exclusion as shown in the following tables... "

Adopting foreign nationals
"If the eligible child is not a U.S. citizen or resident, you cannot take the adoption credit or exclusion unless the adoption becomes final. Take the credit or exclusion as shown in the following tables..."

http://tax-credit.adoption.com/costs...ions.html#when

[GRKinWisc]

Thanks for the clarification on the domestic adoption and tax credit. YES, out failed adoption was for a domestic child that was born in June. We decided to go to China after the heartbreaking loss of our little guy.

[tweet755]

You are able to take the credit the year following the year the fees were paid. This year you can claim the credit for 2004.

Where it asks for baby's ss# and name just put "SEE PAGE 2". Good luck.

[GRKinWisc]

Just wanted let you know that we did receive our full amount for the failed adoption in 2005 that we were eligible for. The adoption was started and failed in 2005. This was a domestic placement that the birthmother chose to take him back after we had him for 2 months (slow court system!). We used the adoption tax credit form, filled it in with the agency's address, info, our costs, any other info that we were able to provide, etc., sent it in via snail mail with a sticky note attached stating that it was a failed adoption and received our check today!

It can happen! Please PM me if you have any questions!
GK

[bmw68]

thanks everyone! we received our full expense reimbursement, too. I guess it is the one and only bright spot in the failed adoption. Thanks again to everyone who responded to my inquiry.