Little out of the loop on the adoption credit. Adoption was final in 2011, but most expensis incurred in 2010. Do they have to wait until 2011 to claim the credit?
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First ?
was it a foreign or domestic adoption -
domestic adoption finalized in 2011 (early January when baby was born)Comment
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Any one have any thoughts?Comment
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next year
You can take the adoption credit on the 2011 tax return not the 2010. See TaxBook
p11-11Comment
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I know that's what the tax book says. However, if you read the adoption credit instructions, it indicates that the credit "may" be taken in the prior or current year. So under what conditions may this happen?Comment
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Are you looking
at the form/instruction for 2009 or 2010?
I have tried the IRS website numerous times and have not been able to get a form (other than a draft form) for 2010.
There exist significant changes from 2009 to 2010 (as a part of the Affordable Care Act), so please let me know if you are using the 2010 version - and I would appreciate a link for it.
Thanks in advanceJust because I look dumb does not mean I am not.Comment
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I was reading the 2009 rules. You're right, the 2010 does state the year after the expenses is incurred if adoption is not finalized in that year. What a crock. If it was a failed adoption they would have no problem claiming them.Comment
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TTB 11-11
Credit. Expenses paid before the year adoption is final cannot be
used to claim the credit until the year after payment. Expenses
paid in the year adoption is final and in subsequent years can be
claimed in the year paid.
If final in 2011 then expenses paid in 2009 may be taken on the 2010 return.Comment
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Right, in a succefull adoption. If you have a failed adoption in 2010, you can claim the expenses in the year of the failed adoption. So basically you get hosed because you have a successful adoption.Comment
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