Baby adoption still pending

[ORTIZETHAN]

We have paid $17000 for a u.s.a new born adoption agency and along with homestudy expense in 2017. Still pending to whether we ever get selected. Can i claim the expenses this year when i file in february 2018 or not.

Thankyou

[Critter]

Since the adoption was not final in 2017 the 2017 expenses are entered on the 2018 return ... and if it is final in 2018 then the 2017 & 2018 costs are entered on the 2018 return.  Nothing can be entered on the 2017 return this year. 

[Kat]

@Critter#2 In looking at the TurboTax FAQ linked below, it indicates that taxpayers "may" be able to use the Adoption Credit in the years prior to the finalization of the adoption.  However, it also states that the credit is a one-time credit, so it may be advantageous (depending on the amount of qualified expenses) to hold off on claiming the credit until the adoption is final.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901405-how-do-i-claim-the-adoption-credit">https://ttlc.intuit.co...>

[Critter]

Read the rules again ... they did not finalize the adoption yet.  The adoption credit always has the one year delay built in ... always has as weird as it seems.  In the program this rule is played out so read the screens carefully.   Here it the IRS info ...   <a rel="nofollow" target="_blank" href="https://www.irs.gov/instructions/i8839">https://www.irs.gov/instructions/i8839</a>

I taught an income tax course 8 years in a row and they always had a question about this in the final exam so I do know this subject very well.

[Kat]

Good for you!  The FAQ confused me!  Thanks!