We did not lose money due to our failed adoptions. Our agency does not collect fees in full until finalization. The fees paid before finalization are the home study and application fees which are only charged once, unless the home study expires and requires an update then a fee is incurred. Any payments made toward the adoption finalization are not lost and will be credited toward the next adoption. This is not always true of all agencies. Many agencies will charge for each adoption attempt. Please make sure and research your financial risks before signing a contract with an adoption agency, facilitator, or adoption attorney.
Our previously failed adoption was included in our taxes when we finalized Rogan's adoption. The failed adoption, Rogan's adoption and finalization all occurred within the same tax year. We claimed all those expenses. We were also able to carry over some expenses to the following tax year. I do not know the ins and outs of the adoption tax credit. We hire a professional accountant to prepare our tax returns. We rely on his professional knowledge. It remains to be seen if we are able to deduct expenses incurred during the most recent adoption attempt. This time, we did not have travel and hotel expenses. Our expenses were minimal. My advice is to always keep your receipts and to ask a professional. The cost of professional tax preparation is generally worth it in the end.
I have heard, but have no official source that failed foreign adoptions are not tax deductible only a finalized international adoption. We have only adopted domestically. Again, ask a professional or do your research.
1 comment:
It is amazing how many people ask about money when it involves adoption. I hesitant to answer as I have a hard time knowing if the person is being nosey or really wants to know. I always say talk to the adoption agency themselves and learn all about their policies and fees. Each agency is so different.
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