Advertisements
:rolleyes: :rolleyes: I am just a tad bit confused, but I think I am on my way to stabilization soon.....lol.. Thanks so much for all the info, I just happened to run into this site and it is really nice to know that there is a forum for us hopeful adoptive parents. You are Great Folks by the way! Well, my question is , If you acquired expenses for the agency or attorney last year in 2002 , but you are not yet placed with a prospective birth mother, then when you go to claim your tax credit, they ask you for the childs name and Identification number, I guess what I am asking, do we still claim those expenses or do we have to wait until we actually have a child to do so? Any help here will be greatly appreciated, I just know that we threw a big chunk out at the end of the year last year Thanks so much!:)
Like
Share
Marta:
It's my understanding (and, if you'll read the post below yours....you'll see that I was sorely misunderstanding the adoption tax credit......).......However, it is my understanding....that you can't claim the 'adoption tax credit' until the child is in your home and the adoption is finalized. We had our baby placed with us in 2001, but when it came time for taxes, her adoption was not finalized....therefore, we couldn't claim the tax credit. Neither could we claim her as a dependent, even though she was placed in our home for adoption........because she was born near the end of the year and had not spent at least six months in our home.
Hope this helps....
Sincerely,
Linny
Advertisements
From what I understand, with the new changes to the tax credit in 2002, domestic expenses can be claimed in the year the child is placed (you don't have to wait until finalization anymore). For international adoption, you still have to wait until the adoption is finalized.
Somebody, correct me if I'm wrong. Still trying to get a handle on all this tax stuff.
Hi, I am new to this forum but not to adoption. We started our first adoption in 2001 and finalized in 2002. We were able to claim the first part of our expenses (about $1200) on our tax form as long as we were able to give the name of the agency we were working with and document the type of expenses. We claimed the rest of the cost when we filed 2002 taxes. So I believe jren is correct. However, you can check [url]www.irs.gov[/url] and punch adoption tax credit into the search and get more info than you ever thought you wanted to know! Good luck!
If I remember correctly, our CPA told us that the tax credit can be applied to even attempts to adopt. Not sure what year it can be applied. Also, my son's adoption was not finalized, thus no ss# for filing by 4/15, so, we applied for an extension and then him as a dependant. See, I really suggest you talk with a professional.
Pam
OK here's how we understand it:
You can take the credit in the year which you finalize an adoption OR if you never finalize - i.e. never become parents through adoption - then you can take the credit the year AFTER the year in which you incurred expenses.
Since you haven't A) finalized or B) incurred these expenses at least a year ago and have abandoned your adoption plan I don't think you'd file for any credit yet.
Again, just my understanding. Check with your CPA - they know best.
Regina, AMom to Ryan Joshua Thomas
Advertisements