Hello Laurencclark14,
I am sorry to hear about the failed adoption process. However, the credit is allowable if the adoption process is domestic. 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).
In your case, you would claim the credit in tax year 2024 by including Form 8839 with your individual tax return. You can find the Adoption Credit entry screens in TurboTax under Federal>Deductions and Credits. The Adoption Credit is a non-refundable credit, meaning that it will offset any tax liability that you have for tax year 2024, but any overage will not become part of your refund amount. Rather, it will carry over to be used against your tax liability for subsequent years until fully used.
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