turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Claiming adoption expenses prior to identifying a (domestic) child

I've searched the forums, and I believe I can claim adoption expenses, but I'm having trouble doing so.

 

My wife and I started the adoption process in 2020.  We spent ~$25,000 in 2020 in adoption expenses to a domestic agency as a 'down payment'.  The process hasn't moved much since then, as we are still waiting to find a match.  My understanding is that I can claim these expenses on my 2021 taxes.  However, when doing this on TurboTax, they ask for the adopted childs' name (which I obviously don't have yet, given that we are still looking for a match).  When I don't provide a name, it says I'm not eligible.  

 

In short, should I be able to claim my 2020 adoption expenses on my 2021 taxes even though I'm still looking for a domestic match?  If so, am I somehow entering them wrong on TurboTax because it requires a name for the child?

 

Any help would be appreciated, as I don't want to mess this up and find out later that I missed the opportunity to claim the expenses. 

 

For the record, below is a copy/paste from a TurboTax post explaining who is eligible to claim adoption costs, and I think this means I should be eligible:

 

"A domestic adoption is the adoption of a U.S. child (an eligible child who is a citizen or resident...

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
RaifH
Expert Alumni

Claiming adoption expenses prior to identifying a (domestic) child

Yes, your expenses paid in 2020 can be used towards the adoption credit in 2021 for a domestic child even if the adoption has not been finalized. 

 

To claim them in TurboTax:

  1. Select Start/Revisit in Federal > Deductions & Credits > You and Your Family > Adoption Credit.
  2. For your child's information, enter "Unknown" for first and last names. The birth year can be approximate. Leave the social security number field blank. 
  3. Select The adoption proceedings for Unknown began in 2020 or earlier.
  4. Select None of the above to Let us know which one applies to your adoption.
  5. Enter your 2020 adoption expenses and leave the 2021 fields blank. TurboTax should apply the credit based on your 2020 expenses, up to $14,440 per adoption. 

 

View solution in original post

1 Reply
RaifH
Expert Alumni

Claiming adoption expenses prior to identifying a (domestic) child

Yes, your expenses paid in 2020 can be used towards the adoption credit in 2021 for a domestic child even if the adoption has not been finalized. 

 

To claim them in TurboTax:

  1. Select Start/Revisit in Federal > Deductions & Credits > You and Your Family > Adoption Credit.
  2. For your child's information, enter "Unknown" for first and last names. The birth year can be approximate. Leave the social security number field blank. 
  3. Select The adoption proceedings for Unknown began in 2020 or earlier.
  4. Select None of the above to Let us know which one applies to your adoption.
  5. Enter your 2020 adoption expenses and leave the 2021 fields blank. TurboTax should apply the credit based on your 2020 expenses, up to $14,440 per adoption. 

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question