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jhclettus
Level 1

Can we claim the adoption credit before we have been matched with a child? How? We started the adoption process in 2019 and paid about $8500 for our agency fees.

 
3 Replies
JotikaT2
Expert Alumni

Can we claim the adoption credit before we have been matched with a child? How? We started the adoption process in 2019 and paid about $8500 for our agency fees.

It actually depends upon the type of adoption, domestic or foreign.

 

See the following chart for more details. 

 

Credit for adoption

Essentially, if it is a domestic adoption, you can take the credit the year after the year of payment.  So if you paid in 2019, then you can take the credit in 2020 if the expenses are for the year before the adoption becomes final.

 

If it's a foreign adoption, you cannot claim the credit until the year the adoption becomes final.

 

Please see the following links for additional information to assist you when you compute the amount of your adoption expenses.

 

Claiming the adoption credit in 2020

 

Additional adoption credit information

 

You will be able to claim the adoption credits in TurboTax in the Federal section of the program.

  1. Select Deductions & Credits 
  2. Scroll down to All Tax Breaks  
  3. Select You and Your Family 
  4. Click Show more and select start (or revisit) under Adoption Credit 
  5. Select your child's name, and click edit or add your child here by clicking start. 
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jhclettus
Level 1

Can we claim the adoption credit before we have been matched with a child? How? We started the adoption process in 2019 and paid about $8500 for our agency fees.

Thanks, very helpful. This is a domestic adoption with expenses we paid in 2019, so we can claim the credit. I'm having a hard time doing this on Turbo Tax since we have not had a child placed with us and do not have a name or SSN. Is there any way to use Turbo Tax to claim the credit without a finalized adoption?

JotikaT2
Expert Alumni

Can we claim the adoption credit before we have been matched with a child? How? We started the adoption process in 2019 and paid about $8500 for our agency fees.

You do not need to have a Social Security Number if you do not have it yet.

 

You will make your entries into the Federal section of the program.

  1. Select Deductions & Credits
  2. Scroll down to All Tax Breaks and select You and Your Family
  3. Select Adoption Credit
  4. You will be able to add your adoptive child information in this section.   
  5. On the screen titled Tell us about your child, enter as much information as you have available to you.
  6. Continue through the screens and answer the questions as applicable
  7. When you see the following screen, be sure to select the applicable box.

Status of adoption

 

You will also need to enter the adoption expenses your paid in 2019.  Those will be the expenses that are deductible on your 2020 income tax return.

 

2019 Adoption expenses input

 

If you are eligible for the credit, TurboTax will let you know at the end of this section.

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