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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29794
Experience:  Taxes, Immigration, Labor Relations
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Hello! I have been researching the new adoption tax

Customer Question

I have been researching the new adoption tax law and would like to know how it applies to our situation. We went through the complete international adoption process and went to bring home our daughter from China, however, (long story) we did not bring her home. Adoption cost with travel about $15,000.00 in the two year process (2005-2007). Upon our return from China, sadly without our daughter, yet with a desire to add to our family we began and completed an international adoption from Guatemala. A two Year Process beginning in July 2007 and bringing her home in Aug. 2009. Total Costs aroung $35,000.00. So our tax man took the tax dedection for that year in which we didn't really need to due to the fact we sold our home and and received and incredible $87,000.00 deduction from that sale. So we had no tax liability in 2009. However, this year because we no longer own a home, we had a huge tax liabilty and owe Fed. & State a bit over $10,000. I am hoping that the adoption law allow us to carry over that deduction from 2009 to 2010 because we did not have a liability in 2009 and the cost of our adoption was so great. Please advice! Mel in CA.
Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.


Hi and welcome to Just Answer!
That is what the IRS provides -

Q.7 I have a carryover from earlier years. Is the carryover amount refundable in 2010?

A. Yes. If you carried forward an adoption credit from 2005 or later (because the credit was more than the tax you owed), you can claim the carried-forward amount as a refundable credit in 2010. You can find the amount of any unused carry forward amount on line 23 of the worksheet on page 5 of the 2009 Form 8839, Qualified Adoption Expenses.
See for reference -,,id=231663,00.html


Thus if your credit was not fully used in 2009 - you may carry forward unused amount to 2010 and used it.
If however - the credit was fully used - there is nothing to carry forward.
You may not decide if you want to use a credit in 2009 or carry forward to the following year - the worksheet mentioned above will provide you with the amount to carry forward.
Let me know if you need any help.