Tax question for the CPAs out there (1 Viewer)

[shadyridr]

My wife and I have been trying to adopt since late 2016. We have $5937 in qualified adoption expenses paid in 2016 and $9000+ in 2017. We have not had a match or gotten close with a prospective birth mother. Can we still claim the adoption expense on this year's taxes for the $5937? I have receipts for everything.

According to the IRS site, it appears we can but I want to make sure and don't want to get audited or have my refund delayed too long.

https://www.irs.gov/taxtopics/tc607

An expense may be a qualified adoption expense even if the expense is paid before an eligible child has been identified. For example, prospective adoptive parents who pay for a home study at the outset of an adoption effort may treat the fees as qualified adoption expenses.

 

[Don Quixote]

Domestic or foreign?  See the rules on timing and Example 4.  Not tax advice.

 

[johnnycakes]

See IRS Notice 97-70 and the section on Timing Rules in the publication you cited:

Generally, the credit is allowable whether the adoption is domestic or foreign. However, the timing rules for claiming the credit for qualified adoption expenses differ, depending on the type of adoption.

A domestic adoption is the adoption of a U.S. child (an eligible child who is a citizen or resident of the U.S. or its possessions before the adoption effort begins). Qualified adoption expenses paid before the year the adoption becomes final are allowable as a credit for the tax year following the year of payment (even if the adoption is never finalized and even if an eligible child was never identified).

A foreign adoption is the adoption of an eligible child who isn't yet a citizen or resident of the U.S. or its possessions before the adoption effort begins. Qualified adoption expenses paid before and during the year are allowable as a credit for the year when it becomes final.

 

[shadyridr]

Domestic

 

[shadyridr]

See IRS Notice 97-70 and the section on Timing Rules in the publication you cited:

Thanks looks pretty clear cut I can get the credit for the 2016 expenses this year.