Client adopted a child in 2008. Client had adoption expenses over the $11650 that was the adoption credit for 2008. In 2009 client had additional adoption expenses. The adoption credit was increased in 2009 to $12150. Should this client be eligible for an increased adoption credit in 2009 as they had additional expenses? Or, are they limited to the adoption credit amount for the year the adoption was finalized?
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They are elimited by the year in which the adoption took place.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
I believe they're limited by the year in which the expenditures are first eligible to be claimed. Assuming you mean that the adoption was final in 2008, any expenses paid in 2008 or 2007 are limited by the $11,650 amount in 2008; the expenses in 2008 that exceed that are lost. However, if additional adoption expenses were paid in 2009, then as I read the 8839 instructions, they would be eligible up to the $500 increase between 2008 and 2009.
If you haven't already, get the the instructions and paper forms for both 2008 and 2009, and follow them carefully. The form has separate entries for currently claimed expenses, carryover expenses, and previously claimed credit.Comment
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Are you sure?
Are you sure the taxpayer was eligible to claim the adoption in 2008? Maybe it shoul dhave been claimed in 2009. Check the rules.Comment
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