The IRS does generally let the adoption credit to be carried forward, even if you are filing as "Married Filing Separately" (MFS). However, there are specific conditions that must be met for it to be added.
- Original Year of Credit: If you were married in the year the qualified adoption expenses were first allowable for the credit, you must have filed a joint return for that year.
- Carryforward: You can carry forward any unused adoption credit for up to five years.
Once you have checked eligibility - TurboTax can add it for MFS.
To verify and check your adoption credit carryforward entries in TurboTax Online, follow these steps:
- Sign in to your TurboTax Online account and open your tax return.
- Click on the search icon (magnifying glass) in the upper-right corner
- Type "adoption credit" into the search bar and hit enter.
- Select the "Jump to adoption credit" link that appears in the search results.
- On the "Did you pay any adoption expenses in 2024 or earlier?" screen, answer "Yes."
- When you arrive at "Did you file Form 8839 in a prior year for Barbara?" click yes
- Go through the remainder of the interview questions. Make sure you enter all information about your adoption costs and any amounts that you carry forward from last year correctly.
- There should only be an entry in the box corresponding to the year the adoption expenses were incurred. For example, if you had an unused adoption credit from 2021, ensure that the amount is entered in the 2021 box.
