From: Morganton, NC

Dear TaxMama,

My wife and I adopted a child internationally.

The readoption here will not be finalized until after the first of the year. I am most positive that we cannot deduct the cost of the adoption on this year's return, but can we list him as a dependent this year?

Thank you for any advice as we are doing this independent of an agency.

Chuck

 

Dear Chuck,

You're going to have such a wonderful, rich life with your new baby.

Unfortunately, the fates of finance are not with you.

Looking up IRS's rules on adoption - if the adoption isn't completed until next year, you won't be able to take the credit for the costs until then, either.

But you already knew that.

Your question is about the dependency exemption.

Well, as much as you've incurred in expenses for your new baby, he's not your child yet. He's not even in the country, I'll bet. And you don't have a Social Security number for him, do you?

Read the information under "When is Adoption Final". Until he's legally your baby, you don't get to claim him as your dependent.

I am so sorry. I know how frustrating and stressful this whole experience must have been...and still will be - until it's all completed. But, in the end, it will be worth it.

Best wishes,
Eva Rosenberg, MBA, EA