Family completes a Home Study with a Certified Adoption Investigator in their state. Family works with CWA Case Manager to complete documents specific to the country of their choice. Family also sends any fees for legalization, translation, post adoption administration, etc. CWA sends the family's documents to the child's birth country for processing and referral of the child. Family sends CWA the International fee when they accept a referral of a child.
Family travels to pick up child.
Claims for the credit will be allowed in the taxable year following the tax year in which the expenses were incurred. However, if the expenses are incurred in the tax year in which the adoption becomes final, the expenses are allowable that year. These expenses are reasonable and necessary adoption fees, court costs, attorney fees and other expenses directly related to the legal adoption of a child. The credit is non-refundable so an adoptive family without any tax liability can not use the credit in that year. However, an adoptive family who cannot use the full amount can carry forward any unused portion of the credit for up to five years.