For most families, claiming the Adoption Tax Credit is not as hard as it sounds. Many popular tax programs and online tax services include step-by-step guidance that helps you claim the credit correctly. If you are comfortable doing your own taxes, these tools often provide everything you need.

However, some families face more complex situations. You may have expenses that do not fit typical guidelines, or your Adoption Tax Credit claim may have been denied the first time you filed. In these cases, working with a tax professional can help you understand your options and avoid costly mistakes.

When you decide to seek professional help, it is important to choose someone who understands adoption-related tax issues. Guest expert Becky Wilmoth, an Enrolled Agent and Adoption Tax Credit Specialist® at Bill’s Tax Service, recommends asking the following four questions before handing over your paperwork.

4 Questions to Ask a Potential Tax Specialist

1. Are you an enrolled agent through the IRS?

Look for a tax professional who has at least an AFSP certification. Even better, choose someone who is an enrolled agent. The enrolled agent designation is the highest level of certification offered by the Internal Revenue Service.

Enrolled agents are qualified to represent taxpayers before the IRS during audits, collections, and appeals. This matters if your Adoption Tax Credit claim is questioned or denied.

The IRS website offers helpful tools to find a qualified tax preparer:

2. How many Adoption Tax Credit returns have you prepared?

Hearing the answer to this question helps you understand how much experience the tax preparer has with adoption-related filings. Someone who has handled many Adoption Tax Credit returns is more likely to know common problems and how to avoid them.

Their answer can also tell you what kind of help you might receive if the IRS audits or denies your claim. It is okay to ask families who have worked with them in the past for their review of their services.

3. Are you familiar with Adoption Tax Credit laws?

Adoption tax rules can and do change, and they often include details that are easy to misunderstand. Enrolled agents study tax law extensively, but not all of them specialize in the Adoption Tax Credit.

Ask how the tax professional learned about the Adoption Tax Credit laws and how they stay up to date. A knowledgeable specialist should be able to explain the rules in clear, simple terms.

4. How many denied Adoption Tax Credit cases have you successfully appealed?

Even well-prepared claims can sometimes be denied. Asking this question helps you understand whether the tax professional knows how to respond if that happens.

Their experience with appeals can show how well they can defend your claim and guide you through the process of amending or appealing a return. Do not hesitate to ask follow-up questions about timelines, paperwork, and next steps.

You Do Not Need a Local Tax Expert

While it may feel easier to work with someone nearby, a local-to-you tax expert is not required. Many adoption tax specialists work with families across the country.

Most tax professionals use secure online portals to share documents safely. This makes it possible to work with an experienced Adoption Tax Credit specialist no matter where you live.

Documentation For Filing for the Adoption Tax Credit

Whether you file your taxes yourself or hire a professional, you must provide specific documents to support your claim. Your tax preparer will complete Form 8839, Qualified Adoption Expenses, and attach it to your Form 1040 or Form 1040A.

The required documents include:

  • Final Judgment of Adoption (all adoptions)
  • Adoption Assistance Eligibility Determination or Subsidy Agreement stating the child has special needs, if claiming the credit for a special needs adoption through the state (foster adoptions)
  • Home study or placement agreement completed by a licensed placement agency (all adoptions except foster)
  • Proof of paid qualified adoption expenses (all adoptions except foster)

All these documents must be signed and dated. The IRS will not accept paperwork that is missing signatures or official dates, including home studies, placement agreements, adoption judgments, or subsidy agreements.

It is also important to keep copies of all adoption tax records in a clearly labeled, secure place for at least 7 years after filing. This protects you if the IRS later reviews or audits your claim.

For more guidance and tools, visit our Adoption Tax Credit resource page.

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