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Originally Posted By Brenda
We have just completed a stepparent adoption. Are we eligible for the tax credit, also? Our final cost was close to $5,000 in legal fees. I have been trying to find this out for awhile and can't seem to locate any info. If anyone can help out, I would be very grateful. My email is blueiris19@hotmail.com, or a reply here would be great, too.
Thank you!
Brenda
Has anyone done this? are our legal fees leading up to the adoption (lawyers for visitation etc) applicable?
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No, the adoption tax credit does NOT apply to stepparent adoption. See publication #968 at the IRS website. Here is the quote:
"Nonqualifying expenses. Qualifying adoption expenses do not include expenses:
That violate state or federal law,
For carrying out any surrogate parenting arrangement,
For the adoption of your spouse's child,
Paid using funds received from any federal, state, or local program,
Allowed as a credit or deduction under any other federal income tax rule, or
Paid or reimbursed by your employer or otherwise (except that amounts paid or reimbursed under an adoption assistance program may be qualifying expenses for the exclusion).
Nonqualifying expenses. Qualifying adoption expenses do not include expenses:
That violate state or federal law,
For carrying out any surrogate parenting arrangement,
For the adoption of your spouse's child,
Paid using funds received from any federal, state, or local program,
Allowed as a credit or deduction under any other federal income tax rule, or
Paid or reimbursed by your employer or otherwise (except that amounts paid or reimbursed under an adoption assistance program may be qualifying expenses for the exclusion)."
Sharky, in a regular adoption -- not a stepparent adoption -- legal fees leading up to the adoption are counted when calculating qualifying adoption expenses. However, people adopting stepchildren cannot take the tax credit.
Sharon
I'm sorry that I couldn't provide more positive news. I know it must be disappointing.
Sharon
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