adoption tax credit when adoption has not been finalized

[seano114]

I have adoption expenses from 2024 that I want to apply to adoption tax credit on 2025 taxes. We are hoping to adopt in 2026 but we don't know the identity of the child yet. In Turbotax 2025 I can't get past the question of SSN and name of the child. It seems to be a shortcoming in the software that it doesn't give me the option when the adoption has been finalized.

[MonikaK1]

You can enter Unknown in the first and last name spaces in TurboTax in order to claim the Adoption Credit. You can leave the SSN field blank. This is for domestic adoptions only. 

• Domestic adoptions: Claim expenses each year as you incur or pay them as long as the adoption is finalized. Claim expense the year after you incur or pay them if the adoption is still in progress and not final. If the child is a U.S. citizen or resident, you may claim the credit even if the adoption is unsuccessful.
• Foreign adoptions: Claim expenses once the adoption is final. When it’s final, you can claim all eligible expenses you paid, including in past years.
• Adoption of children deemed by a state or Indian tribal government welfare agency as special needs or hard to place: Claim expenses when the adoption is final.

If the eligible child is a foreign child, you can’t take the adoption credit or exclusion unless the adoption becomes final. A child is a foreign child if they weren’t a citizen or resident of the United States (including U.S. territories) at the time the adoption effort began. Take the credit or exclusion as shown in the following table.

Find examples of these timing rules to claim the credit in the Instructions for Form 8839, Qualified Adoption Expenses.

See this TurboTax tips article for more information.

[seano114]

Thanks @MonikaK1 . Unfortunately, Turbotax is requiring the birth year before I can move on to the next page. Since the child is not born yet, I cannot fill this information out. Any ideas how to get past this when we don't yet know the birth year?

Thanks

[RobertB4444]

Enter the year that you anticipate the birth year to be.  In this case 2026.  If that changes on next year's tax return then you can change it then.

[ajcphd]

Hello,

I am in this situation, trying to claim a partial adoption credit in 2025 for an adoption that did not finalize in 2025. When I try to enter 2026 for the birth year Turbo Tax will not let me enter the number. It will only accept 2025 as the birth year. 

I can enter UNKNOWN and bypass the SSN

Thanks for your help!

Andrew  

[DaveF1006]

Here is the step-by-step path to ensure the software recognizes those 2024 payments properly.

Since you are filing your 2025 return, TurboTax will usually reject any birth year after 2025.

1.  Enter 2025 as the birth year.
2.  For a non-finalized adoption, this entry is simply a "folder" for your expenses on Form 8839. It does not grant you the Child Tax Credit (which requires an SSN and a real birth date). 
3. When the child is actually born/placed in 2026, you will update the permanent records on next year's return so that you will be able to report them as a dependent.

TurboTax asks for expenses based on the year they were paid. Because of the IRS rule for domestic adoptions, expenses paid in 2024 are claimed on the 2025 return.

1. In the Adoption Credit interview, look for the screen titled "Enter Expenses Paid for [Child's Name]." 
2. Do not enter the amount in the box for "Expenses paid in 2025."
3. Look for the box specifically labeled "Qualified expenses paid in 2024 (or prior years)."
4. Enter your 2024 total there. TurboTax will then apply the "Year After Payment" and pull that amount onto your 2025 Form 8839. 

If you do not have an ATIN or SSN yet, do the following:

1. First Name: Enter "Unknown" or "Baby."
2. SSN Field: Leave it blank.
3.  TurboTax will flag this as an "error" during the final review. You can ignore this. The IRS instructions for Form 8839 explicitly state that for a non-finalized adoption where a child hasn't been identified, you should leave the identifying number blank or enter "Unknown."  This is located in part 1, paragraph 1 of the instructions.

Even though the adoption isn't final,  TurboTax should now show you a refundable credit of up to $5,000 for these 2024 expenses. If you don't see this, double-check that you selected "No" to "Was the adoption finalized in 2025?"

You will need to print and mail this return since there is no SSN issued for the unborn child.