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I'm not sure where to ask this. I'm new here. I'm hoping someone can help me out. :) Without going into all of the details of our story, we have been on this road for a while... after a couple of years of trying to foster-to-adopt (and failing), we decided that we wanted to try the private adoption route (domestic). In 2008, we paid for the home study, among other fees, and became licensed to adopt at the end of the year (Nov). In 2009, pretty much nothing happened.... no matches, no potential matches, nothing. :( In March 2010, we got a phone call that we hadn't yet paid our "match fee" (I knew we hadn't, but figured I wasn't going to pay it until they asked for it). We needed to make a decision then... I decided we'd pay it. Here we are, almost Nov 2010... and nothing. We've been presented to a whopping total of 2 families, both chose other adoptive parents. I am beginning to lose hope, and really trying to stay positive, although my husband has completely given up on our agency. What I'm wondering... is, at what point do we lose the tax credit? Everything I'm reading makes it seem like everything goes so smoothly... "I paid my expenses in 2009, adoption was final in 2010, I claimed my credit". We're talking years here.... am I not going to be able to claim the expenses we paid in 2008? I can't claim them because there is no child (or potential adoption). There is no "failed" adoption. Just a lack of any progress.... I don't know... maybe someone here has some answers? Been through something similar? I know I can seek the advice of an accountant, and when it comes down to it, I will, but I wondered if anyone had been through this?
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The federal adoption tax credit allows you to claim your expenses EITHER 1 - in the year the adoption becomes final 2 - for a domestic adoption, in the year after the expense was paid. So you need to file an amendment to your 2009 taxes to claim the amount you paid in 2008. And when you do your 2010 taxes you claim the amount you paid in 2009. And so on and so forth. The instructions for the qualified adoption expenses form (the 8839) explain what to do if you do not have a child's name and tax id number to enter on the form. It's something along the lines of attaching a paper with your adoption agency's contact information, but I don't remember exactly. Hope that helps!
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Thank you!I kept reading that as an adoption that hasn't been finalized yet, as in there was still a child to associate it with. (I even tried to do my taxes with Turbo Tax with it, but it wouldn't let me. Guess I won't use Turbo Tax for the amendment & this year's return).I did find the part about the agency and attaching a statement. I will look more into it. I would feel so much better if I could recoup some of this money we've paid for an adoption that just seems like it's never going to happen.