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If the expenses were PAID in 2020, you cannot claim them yet. It depends on if you are doing a domestic or foreign adoption- if it is a U.S. adoption, you will have to wait until next year to deduct. Good Luck!
A domestic adoption is the adoption of a U.S. child (an eligible child who is a citizen or resident of the U.S. or its possessions before the adoption effort begins). Qualified adoption expenses paid before the year the adoption becomes final are allowable as a credit for the tax year following the year of payment (even if the adoption is never finalized and even if an eligible child was never identified).
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.
(from Topic No. 607 Adoption Credit and Adoption Assistance Programs)
Thank you for getting back to me! Please allow me just a moment more to clarify.
I wrote the year incorrectly, in my original post. We paid these expenses over the past year- in 2021. According to your response, I cannot claim those until next year? Even though they were an expense this last year?
Also, you referenced that I could claim these next year, even if the adoption never finalized and a child is never matched to our family? How would we do that, without a child and social security number?
I appreciate you taking the time to answer these questions. I really appreciate it.
Thanks for the clarification. Since the expenses were in 2021, you will have to wait until next year (2022 tax return). If you do not have the child info, in Turbo Tax you can leave the name and tax id number blank- it does require a year of birth, but you can use the current year as a placeholder. If you are able to finalize this year, you will have the information. @christensenklan
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