Question

Can I claim my adoption tax credit?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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We received placement of our daughter Jan 2017. We paid $15k in expenses in 2016 and another $20k in Jan 2017 at time of placemement. Since we paid more in expenses in 2016 than the eligible tax credit of ~$13k can we just take the total tax benefit on our 2016 taxes and be complete instead of waiting all of 2017 and claiming when we file next year?

TurboTax Deluxe Online

MargaretL

Employee

No, you cannot take a credit on your 2016 tax return, that is not allowed per IRS rules, unfortunately.

For U.S. adoption - you can claim the credit before finalization (or for a failed adoption) but you must wait one year after you incurred the expenses (so in your case, you had expenses in 2016 for adoption that has not finalized in 2017- you must wait to claim them on 2017 tax return).

For foreign adoption - qualified adoption expenses paid before and during the year are allowable as a credit for the year when it becomes final - so again on your 2017 tax return.

Please select Adoption Credit and Adoption Assistance Programs link for details.