My husband & I paid fees to our agency in 2016 but are still waiting to adopt. Can we claim the adoption credit on 2017 taxes if we still have not been placed w/ a child?

[kellybwhite]

If so, how do we report it on the form since we do not have a SSN?

[DanO · Accepted solution]

If this is a domestic adoption then the qualified adoption expenses from 2016 are deductible on your 2017 return.

These credits are allowable for the tax year following the year of payment even if the adoption is never finalized.

The Qualified Adoption Expenses defined in section 23(d)(1) are:

• Reasonable and necessary adoption fees,
• Court costs and attorney fees,
• Traveling expenses (including amounts spent for meals and lodging while away from home), and
• Other expenses that are directly related to and for the principal purpose of the legal adoption of an eligible child.

This is what the IRS states for a foreign adoption:

A foreign adoption is the adoption of an eligible child who isn't yet a citizen or resident of the U.S. or its possessions before the adoption effort begins. Qualified adoption expenses paid before and during the year are allowable as a credit for the year when it becomes final.

The child to be adopted does not need a SSN or ITIN to claim the adoption credit, that will be necessary to claim your adopted child as a dependent.