My wife and I are looking to adopt a domestic US-born child. We haven’t identified a child yet, but we are hopefully we will identify and adopt a child soon. So far, we have incurred adoption related expenses in 2023 and 2024.
We started the adoption journey in Jan 2023. We have incurred approx. $8K of adoption expenses in 2023 and approx. $4K of adoption related expense so far in 2024.
Question:
- can we deduct the expenses and/or receive the adoption credit for 2023?
- can we deduct the expenses and/or receive the adoption credit for 2024?
- Could the credit be taken away by the IRS if we never identify a child or finalize adoption?
- Looking at my tax situation for 2023, I expect to receive a small refund for 2023. Will I receive the adoption credit as a refund for 2023?
- What other things do I need to know about adoption credit?
Thanks!
