Tax help??

silliestbunny

I hope to get around to doing my taxes today.  I don't really want to go back to our accountant if I have one more simple year of taxes (prior to baby). 

 We've spent a lot of money initiating our adoption. We are currently waiting for a match.  Am I correct in understanding that none of the expenses we've incurred thus far can be counted on this year's tax forms? 

Thanks in advance!

maurisa74

My dad is a CPA in Oklahoma and that is the way he has explained things to me. Now California might have some different rules. If there is a CPA you can call and just ask questions you might want to do that to make sure. 

ksmeg78

My understanding is that for international you must wait until the adoption is finalized to clam any expenses. If you are doing domestic I think you may be able to claim any expenses you paid in 2008 (not 2009) this year even if you do not have a finalized adoption. That's what I get from reading it. However, I am not positive. I think if you use turbotax or something like that, it will walk you through it.

WinWed

k-statebride:

My understanding is that for international you must wait until the adoption is finalized to clam any expenses. If you are doing domestic I think you may be able to claim any expenses you paid in 2008 (not 2009) this year even if you do not have a finalized adoption. That's what I get from reading it. However, I am not positive. I think if you use turbotax or something like that, it will walk you through it.

This is my understanding from running numbers in turbo tax.

amberfernandez

I am a CPA and these are the federal rules:

For domestic adoption:

Any expenses paid on an UNFINALIZED adoption 1/1/08 - 12/31/08, can be claimed on your 2009 taxes which are due 4/15/10.

Any expenses paid on an UNFINALIZED adoption 1/1/09 - 12/31/09, can be claimed on your 2010 taxes which are due 4/15/11.

Any expenses paid on an adoption FINALIZED in 2009, and paid anytime up to the finalization, but not previously claimed on your prior tax returns, can be claimed on your 2009 taxes which are due 4/15/10.

For international adoption:

Any expenses for an international adoption cannot be claimed until the tax year the adoption is finalized.  For instance, if the adoption was finalized in 2009, you can claim ALL expenses on your 2009 taxes, due 4/15/10.

WinWed

Nice clarification. Thanks!