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I have gotten different answers from everyone I have talked to. On the Q and A section of the new IRS adoption tax credit I did not see it addressed specifically. Can the tax credit be used for adoption expenses incurred for an independent adoption, one completed without an agency? Does anyone know?
Nena
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whether you used a licensed agency, a facilitator, an attorney, or whatever. The only exclusion from the tax credit is an adoption of a spouse's child.
Just keep detailed records of things like your homestudy costs, your fees to any facilitators or lawyers involved in the finalization, your court expenses, any travel you did, and so on. While it is unlikely that you will be audited, be prepared to show that the adoption was legal.
If you did an independent adoption, it is possible that your costs were under $10,000. In that case, you would be eligible for a tax credit only up to the amount of your total allowable expenses, unless the child is classified as a domestic special needs child.
Sharon