We will be claiming a failed adoption for expenses paid can we use turbo tax when claiming a failed adoption? If so can we file electronically or must it be mailed in?

[DianeW]

Yes, TurboTax Deluxe or higher will allow you to record your adoption expenses for a failed adoption and this form is allowed to be filed electronically.  TurboTax will walk you through the upgrade and retain your data.

Unsuccessful adoption. If you paid qualified adoption expenses in an attempt to adopt a U.S. child and the attempt was unsuccessful, treat those expenses in the same manner as expenses you paid for adoptions not final by the end of the year. Example. You paid $3,000 of qualified adoption expenses in 2016 in an attempt to adopt a U.S. child. You paid $2,000 in qualified adoption expenses early in 2017. However, the adoption attempt was unsuccessful. Enter $3,000 on line 5. The $2,000 paid in 2017 may qualify in 2018.

To complete this section of your return you can use these steps in TurboTax Deluxe (online).

• In the search box (upper right) type adoption credit > jump to adoption credit (click screenshot attached to enlarge and view)
• Follow the prompts to enter your expenses

The TurboTax FAQ is also quite helpful so I included it here.

https://ttlc.intuit.com/replies/3302188

[hdrezner]

How do you claim failed/unsuccessful adoption expenses that occurred in 2019 and 2020? The TurboTax Deluxe 2020 questionnaire asks for a child's name, but doesn't give an option for failed adoption expenses.

[JotikaT2]

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 titled Let us know which one applies to your adoption, be sure to select the box saying Our adoption was unsuccessful.

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.

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

[Kayleeh55]

In my situation I do not know the name of the child and it will not let me go past the screen titled 'Information About This Adopted Child' unless I enter a name.  Should I enter something like N/A or is there a way to skip this part and still enter in the amount of my 2019 expenses?  

[JotikaT2]

You can enter N/A or child name unknown to allow you to go past this screen.  This will ensure you receive the credit you are entitled to as you paid the adoption expenses even though the adoption did not go through.

[hawks1861]

I keep getting rejected by the IRS for this reason...can anyone help?  This is for an unsuccessful adoption. I was able to go back and select no for disabled, but it was trying to force me to put in a birth year.  I got past it somehow, but then when I re-submitted I got rejected by the IRS a second time.

Description of error:

For each child who is born before 2002 per the 'ChildBirthYr' on Form 8839, the corresponding checkox 'DisabledChildOver18Ind' must be checked.

What needs to be done:

Review Form 8839, Qualified Adoption Expenses. The child's year of birth must be a valid 4 digit year. After reviewing and making corrections, resubmit this return for electronic filing. If the reject continues you may want to print this return and file by mail.

[hawks1861]

You have to type Unknown into the name boxes...has to be a capital U. 

[ReneeM7122]

You are correct, in order to claim the expenses for a failed adoption, you do not need a name for the child when the adoption has not yet occurred.  Enter Unknown for the first and last name, and an [approximate] intended birth date.  The software will not require an ITIN/SSN.

Keep in mind that one year must pass after the incur the expenses are incurred, even if the child was not yet found.  If you have paid the expenses in 2019, you can claim them on your 2020 tax return.  

 Here is IRS Topic No. 607, Adoption Credit

Please keep in mind, the credit applies to a US adoption. 

@hawks1861

[NotThatGuy242]

I'm having exactly the same problem, and I already have Unknown entered in the first and last name fields. My return is still being rejected with this error, which doesn't make sense:

For each child who is born before 2002 per the 'ChildBirthYr' on Form 8839, the corresponding checkox 'DisabledChildOver18Ind' must be checked.

What needs to be done:

Review Form 8839, Qualified Adoption Expenses. The child's year of birth must be a valid 4 digit year.

I've left the birth year blank per the IRS instructions for form 8839, because the adoption hasn't happened, but TurboTax seems to be treating it as if I've entered a value there. I've done this exact thing the past two years without any trouble, as my wife and I have been trying to adopt for several years now, so I don't understand why it's suddenly not working this year. I've checked the PDFs for my previous returns and confirmed that everything matches.

[hawks1861]

Ugh yah I tried calling TurboTax and both the people who called me back told me to make up a birth year. 

[NotThatGuy242]

I've started my own thread, just to see if I get a direct response from Turbotax. Thanks!

[ReneeM7122]

Yes, you can claim expenses for a failed adoption.  Keep in mind that  one year must pass after the expenses are incurred, even if the child was not yet found.  Since you have paid the expenses in 2019, you can claim them on your 2020 tax return.  

You do not need a name for the child.  Enter Unknown for the first and last name, and an [approximate] intended birth date.  The software will not require an ITIN/SSN.

Here is IRS Topic No. 607, Adoption Credit

Please keep in mind, the credit applies to a US adoption. 

@NotThatGuy242

[NotThatGuy242]

Thank you; my return was successfully filed. It seems a little odd that all of the error checking doesn't catch that beforehand, though.

[KMmallas]

I was getting the same error as you. We had to put the estimated birth year and state that it was failed adoption since it didn't go through. Once we corrected those errors, the federal was accepted.