Started adoption process, but then stopped. Are expenses deductible?

My wife and I started the adoption process in 2016 (and continued in 2017). But we were never matched and have now decided to stop the process.

Over the course of these two years we have incurred some expenses. Are these expenses deductible as part of the adoption tax credit (i.e. is it considered a "failed adoption" even if we were never matched)?

Presumably, for 2017 we can only deduct expenses incurred in 2016 as far as I can tell. Then next year (2018) we could deduct the expenses we had in 2017?

Thanks for any and all help!

posted

Yes, for a domestic adoption you may deduct your expenses for the tax year following the year of payment even if an eligible child was never identified. For more information, please see IRS Topic Number 607 - Adoption Credit and Adoption Assistance Programs.