How do I work the adoption credit? I adopted my children in 2019 and filed last year fine. This year TT wants me to submit a new child that doesn't exist. Can't file

[mysticalamour]

I'm trying to do this years taxes.  When it comes to the adoption credit TT keeps asking for a new adoptive child info that doesn't exist.  I keep deleting and it keeps coming back.  I can't get around it and TT wont let me file.  I've deleted and re started my taxes 3 times.

[MarilynG1]

Did you indicate that you had Adoption Expenses for 2020 and earlier? Did you indicate in the Adoption interview that the 'adoption was final in 2019'?

Your adopted child will be added in this section so that you can claim your 2020 expenses, even though you also claimed 2019 expenses for the same child.  

If so, you should be asked for your 2109 expenses, and also your 2020 expenses, to make sure you don't exceed the Adoption Credit limit.

Click this link for more info on Entering Adoption Expenses. 

[mysticalamour]

Thank you for your reply.  I have no expenses this year, everything was settled in 2019.  I seem to be stuck in a loop, I have cleared everything, re entered all my tax info to make sure not to click anything.  I have carryover credit and because of this it keeps asking for the adopted child.  I delete and as soon as I leave the page, it reappears.  Very confusing! 

[LenaH]

If you are having trouble on this screen, you could delete Form 8839 and then enter your credit carryforward. 

To remove Form 8839, please follow these steps:

1. Open your tax return.
2. Click on Tools.
3. Click on Delete a Form. 
4. Scroll down to Form 8839 and click Delete. 

Once complete, complete the following steps to enter your carryforward:

1. Search for adoption credit and select the Jump to link.
2. On the Did you pay any adoption expenses in 2020 or earlier? or the Credit for Adoption Expenses screen, read the information and, if you qualify, answer Yes.
3. Continue answering questions until you're finished.

@mysticalamour

[smithad63]

Support told me last week this is a known bug. I have the same issue. Won't let you delete the form as it just gets regenerated. You can click adoption final "Yes" and enter the year finalized as field is disabled.

PLEASE FIX

[TeresaM]

Just to clarify, we would like to take a deeper look at this.

Did you have an adoption within the last 5 years and there is a carryover Adoption Credit coming from last year? If so, which year, please.

It would help to have a diagnostic file, which is a sanitized copy of your tax return that has all of your personal information removed but has all of the forms and numbers entered. You can send one to us by following the directions below and posting the token number here so we can access the sanitized return.

 TurboTax Online:

1. Sign in to your online account
2. Click on Tax Tools on the left toolbar
3. Select Tools
4. In the pop-up screen, click on "Share my file with agent"
5. Click OK on the message that a diagnostic file will be sanitized and transmitted to us
6. Please post the Token Number

TurboTax Desktop/Download Versions:

1. Open your return
2. Click the Online tab in the top menu bar
3. Select "Send Tax File to Agent"
4. Click Send on the message, and the tax file will be sanitized and transmitted to us
5. Please post the Token Number

[smithad63]

I saw in another post to search "Adoption Carry forward" and complete the wizard. This appeared to resolve the issue on the 8839 form review and let me file me 2021 taxes. I have no Adoption Expenses from 2021 but had a carry forward from 2019 and 2020 of $14300. I printed out my filed taxes and Turbotax did not file a 8839 at all for this year although I entered the carryforward. Is this correct as there were no expenses in 2021 or should the 8839 form still have been filed with the return by TurboTax?

[GeorgeM777]

Yes, your return may be correct as is without Form 8839 being included.  Regarding the adoption credit, the IRS has stated that an eligible child is an individual who is under the age of 18 or is physically or mentally incapable of self-care.  If you have adopted children that are over 18, that may explain why you are not seeing the credit for those children who are 18 or older. 

Tax benefits for adoption include both a tax credit for qualified adoption expenses paid to adopt an eligible child and an exclusion from income for employer-provided adoption assistance. The credit is nonrefundable, which means it's limited to your tax liability for the year.  Thus, if you have no tax liability, then you will not see any adoption credit and will likely not see Form 8839 included with your return.

Any credit in excess of your tax liability may be carried forward for up to five years. The maximum amount (dollar limit) for 2021 is $14,440 per child.

Here is a link to the IRS webpage that discusses the adoption credit which you might find helpful. 

Adoption Credit

@smithad63

[workingmom4]

This continues to be a problem with TT.  We have a caryforward, but it won't apply it to our 2021 tax liability.