Should we apply for adoption credit in 2018 or 2019. Baby was adopted Oct 1 2018 and all fees were paid in 2018. Adoption will be final March 4, 2019?

[ggriffin1952]

Baby was adopted and placed in our home Oct 1, 2018. All legal and adoption fees were paid in 2018.  Adoption will be final March 4, 2019. We do not know if we can claim adoption credit on 2018 taxes or wait until 2019 taxes.

[KatrinaB · Accepted solution]

You will claim your expenses on your 2019 tax return. Please read the information below and click the IRS link at the bottom to learn more.

The IRS timing rules for claiming qualified adoption expenses differ, depending on the type of adoption.

• A domestic adoption is the adoption of a U.S. child (an eligible child who is a citizen or resident of the U.S. or its possessions before the adoption effort begins). Qualified adoption expenses paid before the year the adoption becomes final are allowable as a credit for the tax year following the year of payment (even if the adoption is never finalized and even if an eligible child was never identified).
• A foreign adoption is the adoption of an eligible child who isn't yet a citizen or resident of the U.S. or its possessions before the adoption effort begins. Qualified adoption expenses paid before and during the year are allowable as a credit for the year when it becomes final.

 https://www.irs.gov/taxtopics/tc607