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Could someone please explain to me what to do: Here is my situation - We have spent so far approx $8.5K in domestic adoption fees to an agency in 2012. We have a notarized statement of costs from the agency. We have just prepared our taxes for 2012 with an accountant at HR Block a couple of evenings ago. As soon as I mentioned that I wanted to apply these fees to our 2012 taxes, he got all flustered. It wasn't our normal routine of what we usually do and he didn't know what the hell to do and tried to tell me to wait for the placement of the child. I know this is incorrect info, besides get rid of him, what is the correct process. Please explain it to me like I am 10 so that I understand it well. We will also have more charges in 2013/2014,depending when the baby gets placed. I know there is a $12,650 credit - but I have no clue at all how it works. Our taxes are prepared except for this and he said we owed the federal taxes $300 and NJ state owe us $600. Please advise/help so that I can now tell the accountant what to do, instead of him supposed to tell me what to do! Thanks for any help!!! I am getting nervous because the end of the tax year is coming up.
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You can't claim it prior to placement. A social security number is required for claiming the credit. If the child is placed with you but the adoption isn't final you can get the tempory SSN but you must have a SSN for the child to claim the credit.So even though you've got expenses, you can't claim them until a child is placed.The maximum you'll be able to claim for this placement is 12,650. So if a child was already placed with you, you could claim that 8500, but you'd only have 4150 left to claim the year of finalization, assuming of course that you had another 4150 spent.If you have a child placed with you in 2013 then you'll still be able to count expenses paid in 2012 when you file your 2013 taxes.
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