If I take the adoption tax credit and go back to 2005 and the adoption won't be final till 2007....?

will I be better off not claiming anything for 2005, claiming what I can for 2006 and carrying over since it will (hopefully) be final in 2007? OR can I go ahead and claim the little bit for 05 and 06 and proceed w/ using the larger chunk in 07 as well? I think I'm interpreting the tax law to say you can carry over as many years as you need to until the $10,000 credit is used up. Is this correct? Any expertise would be helpful.

If I take the adoption tax credit and go back to 2005 and the adoption won't be final till 2007....?
Here are the rules for the adoption credit.





When to Claim the Adoption Credit


What year you can claim the adoption credit depends on when the adoption was finalized and whether the adopted child is a US citizen, resident alien, or foreign national.


If the child is a US citizen or resident alien, then you take the adoption credit in the following order:





for expenses paid before the adoption is final, you take the adoption credit in the year after your expenses were paid,


for expenses paid in the same year that the adoption is final, you take the adoption credit in the same year, and


for expenses paid in the year after the adoption is final, you take the adoption credit in the year the expenses were paid.


For example, you adopted a child in 2004, but you paid adoption expenses in 2003, 2004, and 2005. Your 2003 expenses are taken on your 2004 tax return (they must be delayed by one year because the adoption was not final). Your 2004 expenses are taken on your 2004 tax return (because they occurred in the same year as the adoption became final). You take your 2005 expenses on your 2005 tax return. In this example, your 2004 adoption expenses include both your 2003 and your 2004 expenses.


If the child is a foreign national, then you take the adoption credit only in the year when the adoption becomes final. Any expenses paid in the year after the adoption is finalized, you can take a credit for those expenses in the year that you paid them.





If your adopted child does not yet have a Social Security Number, you must apply for an Adoption Tax ID Number (ATIN) in order for you to begin claiming your adopted child as a dependent. The IRS provides comprehensive information on the Adoption Taxpayer Identification Number.
Reply:Adoption credits are not something that should be answered with out careful consideration of the facts in your specific case. A general rule is that you take expenses in the year after they are accrued until the adoption becomes final and you would take all the remaining expenses in that year. You should also be aware of the special needs children rules which may allow you to take a credit beyond your actual expenses. The best advise is to see a tax professional.