Adoption Tax Credit

Something that has been a Godsend to families who are trying to adopt is the Adoption Tax Credit.  Here is some quick info on the tax credit in my words.  For even more details, you can visit http://adoptiontaxcredit.org/about/.

Before:  In years past, the adoption tax credit had been up to $13,000 or so, but was nonrefundable.  I know $13,000 sounds like a lot, but keep in mind that $20,000, $30,000, and $40,000 or more are not unusual expenses for an adoption.  And by non-refundable, this meant that if you had a low tax liability (such as us), then you won't see any relief from the credit.  You wouldn't get a check for $13,000- that would just go against any money you owe the government.

2010 and 2011:  These were apparently THE YEARS to adopt.  The adoption credit was made refundable, meaning if you didn't owe the government taxes, you could potentially get a check for up to $13,000 or so.  They screen the tax returns quite intensely to make sure people are not cheating the system, but this would have been amazing to not go broke during the adoption.

2012: Anyone finalizing an adoption this year gets a credit of up to $12,160, but it is nonrefundable again.  Matt and I generally do not owe taxes, so the credit is basically a wash again.

After 2012:  Curernt tax credit sunsets, and there will be only a $6,000 nonrefundable credit for special needs adoption, no real credit for any other adoptions.

The good news:  The House of Representatives is currently considering the Making Adoption Affordable Act, which would make the tax credit permanent and refundable, thereby helping families and children across the country.  Selfishly, we'd love it if you would contact your representative in support of the act.  Find your representative here: http://www.house.gov/representatives/find/  And not just for us- for the many children across the county who also need a forever home.

Please help!

June 12th is Save the Adoption Tax Credit Advocacy Day.  That would be a great day to reach out to your reps, "like" "Save the Adoption Tax Credit" on Facebook, or just share your support of adoption credits on Facebook and other social media sites.

Thanks everyone!