Question

Can attorney fees and other expenses paid to obtain legal guardianship of minor children before we began the adoption process be included with the adoption tax credit?

Forum|Forum|6 years ago
June 4, 2019
3 replies
0 views

We adopted two grandchildren, but before we began the adoption process, we petitioned the court for legal guardianship, can we claim those attorney fees, and other guardianship related expenses with the adoption attorney fees and expenses?

TurboTax Deluxe Windows

J

JulieH1

No.

I say this with such certainty because I personally had the same situation with a client several years ago. The IRS audited and disallowed the guardianship prior to the adoption because they said it was not "for the principal purpose of the legal adoption." I felt certain, like you seem to, that the correlation between the adoption and the guardianship made sense, but the IRS ruled otherwise.

The IRS defines qualified adoption expenses as:

Qualified adoption expenses are reasonable and necessary expenses directly related to, and for the principal purpose of, the legal adoption of an eligible child.

Qualified adoption expenses include:

Adoption fees,
Attorney fees,
Court costs,
Travel expenses (including meals and lodging) while away from home, and
Re-adoption expenses relating to the adoption of a foreign child.

D

ddehnejr

I am not seeking to combine expenses. Adoption is not being considered at this time.

LindaS5247

Please clarify your question by adding some additionaol information so we can provide a more helpful response. Are you asking about taking the adoption tax credit? What specifically are you trying to do?

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D

ddehnejr

My fiance' had permanent custody of her granddaughter, but she passed away this past May. So I had to hire an attorney to petition the state for legal custody. In my mind, this would be similar or equal to, adopting. So I was wondering if it is permissible to claim that expense same as claiming expense for adopting.

DaveF1006

If you are engaged in a formal adoption proceeding, you may be able to claim the following. For both the credit and the exclusion, qualified adoption expenses, defined in section 23(d)(1) of the Code, include:

Reasonable and necessary adoption fees,
Court costs and attorney fees,
Traveling expenses (including amounts spent for meals and lodging while away from home), and
Other expenses that are directly related to and for the principal purpose of the legal adoption of an eligible child.

To see if you qualify for the credit this year. Go to;