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Someone please tell me if I am reading this right...
According to the IRS publication a failed attempt to adopt one child and a subsequent successful attempt to adopt another child are all treated as one adoption????
So if I had $18,000 spent on a failed domestic adoption last year, then spent $27,000 on a successful international adoption, I can only claim $10,320 of the $45,000 that I spent?
At one time I was told that I could claim the $10,000+ for each one, but the way I read it now, I think basically I won't get any help with the expenses for the failed adoption.
Suggestions?
Yes, you are reading this correctly. If you have one failed placement, then subsequently adopt, it's one tax credit. IRS considers it one "event" b/c one child is adopted (regardless of the # of connections/failed placements). The only way you'd have been able to claim twice is if three tax years lapsed between attempts.
You can only claim the $10,320 tax credit, this can carry forward for up to 5 years if you didn't pay $10,320 in tax in one year.
Regina
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check with an accountant.. just in case!! it never hurts to get someone that does this all the time.. to take a look at it.