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Old 02-22-2017, 09:50 AM
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2 failed adoptions different years

First adoption started in 2014 and ended up failing in 2015.
2 nd adoption started in 2015 and failed in 2016.

Are we able to claim both the failed adoptions?
We claimed the first failed one last year because it failed in 2015 so we had to wait a year.
The second failed one was finalized as fail in 2016 so can I claim that one on this years taxes?
I'm being told 2 different things.
First being you can only claim the credit once doesn't matter how many you have failed and I've also been told that because there different years I can claim them separately.

Any clarification on this would be much appreciated.



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Old 02-22-2017, 10:45 PM
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Are we able to claim both the failed adoptions?======>> There?s a ?yes? and a ?no? depending on your circumstances if you paid qualifying expenses for an adoption; If you adopt domestically and the adoption fails, then you can take the adoption tax credit the year after your adoption has failed. So if the year (2014), you are in the process of adopting domestically, and spend $9k on adoption related fees and birth mother living expenses and the birthmother changes her mind, you can take the tax credit of $9k when you file your 2014 taxes in 2015
You can claim the adoption credit for qualified adoption expenses paid for the attempted adoption of an eligible child who was a U.S. citizen or resident at the time the adoption effort began. you can claim the credit for a failed adoptions. Nothing?s changed in that regard.When to claim is a separate issue. In a failed adoption, of course, there is no finalization. My position is that the equivalent of finalization is when the adoption fails, so you can take the credit in that year. If you follow the IRS instructions to the letter, you claim the year after the expenses were incurred. Each adoption or failed adoption involves a different child, so you can take a separate credit for each. Taxpayers have fought the IRS on this matter, they?ve won. If you were audited and denied an adoption credit in a prior year(s), then, you may request reconsideration of a prior-year denial if you have new information that could change the earlier decision. To request reconsideration, you need to send the IRS copies of the earlier audit letter and of the new documents. You may not request audit reconsideration, however, if you previously signed an agreement agreeing to the amount of tax you owed as a result of the audit.


We claimed the first failed one last year because it failed in 2015 so we had to wait a year.
The second failed one was finalized as fail in 2016 so can I claim that one on this years taxes?
I'm being told 2 different things.
First being you can only claim the credit once doesn't matter how many you have failed and I've also been told that because there different years I can claim them separately.========>As mentioned above. Yes if it is a U.S. adoption and you had qualified adoption expenses. It is treated as a non-finalized adoption, and you must wait 1 year after you incur the expenses. So, basically, you should be able to claim any of your 2014 expenses on your 2015 return, but will have to wait to claim your 2015 expenses until next year. This is exactly the example called out in the unsuccessful adoption section cited above.



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