I started adoption in 2019 and in 2020 I deducted my first costs. Now I am trying to deduct my 2020 adoption expenditures but only 2019 can be entered. I have already deducted 2019 so how do I deduct 2020? The adoption is not final.
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The adoption tax benefits provide an incentive for individuals or families to adopt an eligible child. The 2020 maximum dollar amount per eligible child is $14,300. If your expenses were spread over multiple years, you might be able to spread the credit over multiple tax returns (see Who Qualifies and What Adoption Expenses Qualify below).
Included in the tax benefits is a nonrefundable tax credit. This is a dollar-for-dollar reduction in the amount of federal taxes owed (tax liability) for the year. You won't get a refund if the tax credit is more than your total tax owed for the year. However:
To claim the adoption tax credit in TurboTax:
An eligible child is:
Regarding the adoption tax credit, keep in mind:
Thank you but that does not answer my question.
Ok ... not sure how you deducted the 2019 expenses on the 2019 return ... that was a mistake if you did.
Since the adoption was not completed in 2020 then you can only use the 2019 expenses on the 2020 return ... there is always a 1 year delay. If the adoption is not completed in 2021 then the 2020 expenses would be deducted on the 2021 return. But if the adoption is final in 2021 then you get to deduct both the 2020 & 2021 expenses on the 2021 return. Read the rules : https://www.irs.gov/taxtopics/tc607
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