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Level 2
June 1, 2019
Solved

Abnormal adoption situation

  • June 1, 2019
  • 3 replies
  • 24 views

In 2016 we were in-process of adopting twins. We successfully adopted and finalized 1 of the 2 babies. All adoption fees were wrapped together for the twins as there was 1 total cost for this adoption (i.e. there's no distinction of what portion of the fees were associated with each child). Can we claim the adoption tax credit in 2016 for the finalized child and then the credit in 2017 for the failed one?

Best answer by bwa

Can we claim the adoption tax credit in 2016 for the finalized child and then the credit in 2017 for the failed one?


Yes, as the expenses are eligible for the credit in the year after the year paid, or in the year the adoption is finalized.  You just need to make a reasonable allocation of costs between the two children.


3 replies

Alumni - Champ
June 1, 2019
Could you clarify your post - is the adoption of the second twin a failed adoption, or one merely deferred until 2017?
rckyskiAuthor
Level 2
June 1, 2019
the second twin is a failed adoption
bwaAlumni - ChampAnswer
Alumni - Champ
June 1, 2019

Can we claim the adoption tax credit in 2016 for the finalized child and then the credit in 2017 for the failed one?


Yes, as the expenses are eligible for the credit in the year after the year paid, or in the year the adoption is finalized.  You just need to make a reasonable allocation of costs between the two children.