[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!!

I asked this in the Adoption Finances section but didn't get any responses so just thought I'd ask here as well.

Thanks!

[Kat-L]

Originally Posted by 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!!

I asked this in the Adoption Finances section but didn't get any responses so just thought I'd ask here as well.

Thanks!

You can include all your adoption expenses when you file for this year-including the agency expenses for 2007.

[mandirenee]

We were told we could not file until after finalization. You should talk to a tax adivisor or tax attorney since the rules are different for every situation.

[feelingreyt]

You can file for the credit the year after the expenses inccured, unless you finalize in the same yr. For example, all of our adoption expenses and finalization occured in 2007, so we were able to take the credit. Had we not finalized, we would not have been able to do so. Also, if you are doing an International adoption, at no time can you take the credit BEFORE finalization.

[mandirenee]

feelinggreyt - Is there a typo in your first sentence. Shouldn't it say " You cannot..."

I just read the credit information again from the IRS and it says you cannot file until after you finalize. I think there's an exception for "special needs" children from your state.

Maybe I'm wrong. I wish/hope I could file before finalizing!

[DianeS]

feelingreyt's post is correct. You can file for the adoption tax credit in the year AFTER you paid adoption espenses, or in the year you finalize - whichever comes first. (This is assuming it's a domestic adoption - international has different rules that aren't discussed in this post.)

Since your expenses were paid in 2007, and you do not have an adoption that was finalized in 2007, you must wait until you do your 2008 taxes (in April 2009) to claim the expenses. But you can claim the 2007 expenses in 2008 whether or not you have a finalized adoption.

Post back if that doesn't make sense.

[mig42]

Ok I got it now. Thanks everyone!!