[wdean20]

In 2002 my wife and I attempted a private adoption. All was nearly final, all lawers were paid, then three days before the due date the mother backed out. The child was born in 2002. Two out of three IRS reps. have told me that I can claim the adoption credit. One of those said on the 2003 taxes and the other said that I could for 2002. My question has three parts....(1) Am I eligible for this tax credit even though the adoption failed? (2) In which year ? (3) And probably the hardest question of all is the tax form itself.....Do I need a child's identifying number? I am unable to track the mother down since she has moved. Even if I were able to get in touch I am certain that she would not give us the required info. Please help.

[reneetaylor]

My opinion - I wouldn't think that you'd be able to claim the expense since the adoption never took place. That is like having a miscarriage and still claiming a child exemption when you file your taxes. It isn't right to claim a credit when you don't have a child to show for it. That isn't fair to those people who do have a successful adoption and actually have a new family member in their house to care for and support. It also isn't fair to the birthmother, who keeps her baby and is claiming him/her on her own taxes.

I would think that anyone doing your taxes would probably ask for the date of birth, date of adoption, child's SS #, etc. Since you cannot provide that, then I wouldn't think you are eligible.


Renee

[wdean20]

Sorry, I guess that you misunderstood my question. I was looking for an answer according to the rules set forth by the Internal Revenue Service not your opinion. In fact According to the IRS which is the authority on tax matters, not you, I can take the credit and I will. My question was mainly concerning the social security #. In the future I would recommend that you use chat rooms to stress your opinion. This particular Forum is titled "Legal Issues" and the people posting on it are looking for legal answers. So either educate yourself or take the advice that I just gave you.

[reneetaylor]

Whoa! Back up a minute! No need to be a smartass! I didn't mean to sound like I was insulting you, and I specifically said that it was my opinion that I was giving. Do you read posts on the legal issues forum? All kinds of people give their 2 cents, not just the lawyers on board.

If you can get the credit then fine.... get it, but I just said that in MY OPINION, I didn't see how it applies since you did not finalize the adoption. I was not saying that to be hurtful to you or your family, I was just stating my opinion on the matter.

I see a serious way for this credit to get blown out of proportion, because if people can write off failed adoption expenses, then why not write off failed infertility expenses and surrogacy expenses, and God only knows what else.

Yes, this is a legal board and I would like a LEGAL answer to my inquires as well. I would like to know how a person can claim a credit for the same child that is being claimed on another person's taxes as a dependant? Especially if they both try to use the same ss# on both sets of tax forms. I just don't see how that can be legal! My question is as vaild as yours and deserves an answer as well.

Are there any lawyers out there who can respond?

[wdean20]

Come on now. Are you trying to tell me that your first reply was not sarcastic. What were you feeling when you wrote it. Think about it..........I do understand how forums work. All I want is a reply from someone who appears to know something about what I am discussing not feelings and emotions.
Also.....failed infertility treatments are tax deductible. And this includes IVF! So does your reply really have merit or validity?

[reneetaylor]

Look, I sincerely was not trying to be sarcastic. Whether you believe me or not is of no concern to me. I'm not going to waste my time responding to your comments, so I will remove myself from this thread.

You seem to have lost track of your original question anyway... and my comment about the legalities of two families using the same child as a tax write off seemed to hit a nerve and will just have to remain unanswered.

[wdean20]

Great. If that is a burning question for you then start a thread to get your question answered. Don't use it as a rebuttal to someone elses question.

[strosnstars]

You can refer to IRS Publication # 968 (available on www.irs.gov) for the rules regarding the Adoption Tax Credit. It does state that in order to take the credit, the adoption must be finalized. It also states that you must provide the childs identifying number. Seems like your out of luck on both counts. Although you will not be able to take the credit, you may be able to write off the loss. You will have to check with a CPA on that.

Good luck,

Laura

[Carolina Mommy]

wdean20

Hi,

I feel your frustration because we were in the same boat. My husband and I had two failed adoptions. One in Dec of 2001 and one in August of 2002. We lost abour $9600.00 in attorney fees, travel, birthmom living expenses and so on.

I told our accountant and he suggested we claim a casualty loss. He asked for me to bring all of the contracts and receipts with our other tax info and I did. We were able to claim the loss. The downside was that it wasn't dollar for dollar. Of the $9600.00 we were actually able to write off $3300.00 of it. It doesn't sound like much does it?

Anyway, I'm sorry for your failed adoption. I know it's hard on both of you. We are still trying though.

Kim

[wdean20]

I apologize for my remarks to all. No hard feelings please. Again I am SORRY. Thank you for those who have sincerely responded to my question. However.......The title of this thread advertises that (This board has 3 experts). I am still waiting for an answer from the experts. Are the experts the senior members? Please respond. Thank you.

[wdean20]

To all those who are concerned with my question and especially Carolina Momma I have found a definate answer. I just got off the phone with the IRS. Spoke in detail of my situation. The answer was that I most definately can take the adoption credit for a failed adoption. All the publications that we went over mentioned "failed" or unsuccessful "adoptions". They mention to enter see page 2 for the information that you are unable to get. Even though the worksheet seems to disclude a failed adoption I was told that was just a worksheet and that I needed to omit that worksheet. The agent pointed out several areas in the publications that proves my case. So Carolina Momma maybe you can look into this and get some sort of adjustment for your 2001 failoed adoption.

[Carolina Mommy]

Wow!

What a bright ray of sunshine you are! Thank you for sharing that with everyone. I will call our accountant tomorrow morning.

Again, good luck with your future adoption plans and I want to hear from you with your success story.

Kim

[DaisyN132]

Am glad to hear that you have figured this all out. But we dealt with a similiar prob ( well at least in the tax issue)

We adopted our foster child and had claimed her on our taxes as OUR daughter this year, but low and behold "someone" else claimed her.

We were told that we could file our taxes with her on it, but we might not get the tax credit for her...we would have to file an ammendment next year and PROVE that she was our daughter.

I was more than willing to send in the paperwork (adoption cert/birthcert, etc) but they don't want it now...the IRS says that IF they need it, then they will contact us...

So we are still waiting...should get some sort of return end of April....Good luck (and by the way, I NEVER got a "Legal Response" on my thread last month either!)

[wanttobeparents]

wdean20,

Our CPA showed us in the tax code where indeed, we could take the tax credit for a failed adoption. He had the same question you did, what do you use in place of the child's SS #?

[wdean20]

You would put see page two in the blank provided for the SS#. On page two you must put the names of the facility or lawers in which you worked with.