Can I claim adoption fees paid to an adoption agency although i have not adopted yet?

[milarga]

Can I claim adoption expenses although adoption has not been finalized?

[JotikaT2]

It actually depends upon the type of adoption, domestic or foreign.

See the following chart for more details. 

Essentially, if it is a domestic adoption, you can take the credit the year after the year of payment.  So if you paid in 2019, then you can take the credit in 2020 if the expenses are for the year before the adoption becomes final.

If it's a foreign adoption, you cannot claim the credit until the year the adoption becomes final.

Please see the following links for additional information to assist you when you compute the amount of your adoption expenses.

Claiming the adoption credit in 2020

Additional adoption credit information

[milarga]

This is very helpful. Thank you. 

[JoannaB2]

Yes, taxpayers can receive a tax credit for all qualifying adoption expenses up to $14,300 in 2020. An eligible child is an individual under the age of 18 years or is physically or mentally incapable of self-care. Taxpayers may also exclude from income qualified adoption expenses paid or reimbursed by an employer, up to the same limit as the credit. The qualified adoption expenses includes:

• Reasonable 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 the legal adoption.

The qualified adoption expenses can be claimed on the year on the year expenses are paid, whether it's domesctic or foreign adoption, and the year adoption was finalized.