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From reading on the tax credit in the past, there is some wording stating that it applies to any "attempt" at adoption. I have heard from some, that you can use fees paid for agency and bmom expenses if the bmom ended up deciding to parent- is this true? Obviously, we wouldnt have social security number or whatever.
For us this year, it doesnt apply, becasue we had the one that DIDNT happen, and than, hooray, one that DID, which was over the 10,000 limit, so we will claim that this year. But, an agency told us that we could carry over the fees (like 2500) from the fallen through placement to next year...does this make sense? Has anyone ever done this?
The IRS only considers a 'failed' adoption one where you never adopted. A failed situation in their eyes is not a failed adoption - you did in fact adopt a child. Therefore, the costs associated with the situation that did not result in a placement are not recoverable separately, though they do count towards the total cost of your successful adoption.
HTH, check as always with your CPA, not your agency as they're not tax professionals.
Regina, AMom to Ryan Joshua Thomas
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