Can a taxpayer claim the Adoption Credit if they were reimbursed by their employer for the full amount of their adoption expense, BUT the employer includes the full amount of the reimbursement in the employee’s gross income? The full reimbursement amount is included in Boxes 1, 3, & 5 of the W-2 and is not shown in Box 12, Code T as an Employer-Provided Adoption Benefit.
And then what about the Exclusion of Employer-Provided Adoption Benefits?
If they can’t claim the Adoption Credit, shouldn’t they be able to exclude $14,300 of the reimbursement from tax? But Form 8839 does not appear to allow for any exclusion without a Code T on their W-2...
Have searched high and low and cannot find any guidance on this, so any help will be greatly appreciated!