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I am confident on the adoption tax credit that we can take agency fees, attorney, fees, court, travel costs, but our biggest hit is paying for bmom medical expenses & her counseling. Please tell me those are qualified adoption expenses!!!! :confused:
Sadie,
I looked at the IRS Publications and while it doesn't list it specifically as a Qualifying expense, it also doesn't list it as an unqualified expense. This might be a question for your Tax Preparer.
[url]http://www.irs.gov/pub/irs-pdf/p968.pdf[/url]
If you look at the link above, on page two it says "Qualifying Expenses" and it basically says "Other Expenses directly related to the adoption of the child" so I'd say (and this is just my opinion based on reading the forms) that if that is an allowable expense in your state, then it should be ok...but again, talk to your tax preparer.
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I think when I must of read the pub 968 a month ago I must of keyed in on just what you read. The statement above the list of qualifying expenses. Because I thought medical expenses would qualify. Then today I read it again in more detail and was alarmed when I saw the "list" doesn't specifically mention it.
I also noticed right underneath all that when it talks about "what doesn't qualify" it refers to expenes that "violate any federal or state law". So my gut says these expenses probably do qualify, since they are adoption related, and our state does allow us to pay for these expenses for bmom.
I think I'll detail all these expenses to our tax man and ask him to give it a double check.
Thanks.