Friday, January 18, 2013

Adoption Tax Credit

Thanks to all of your help and support, on January 2, 2013, Congress passed a bill to avert the “fiscal cliff,” ensuring the permanency of the adoption tax credit and extending the tax credit as it was in the 2001 Economic Growth and Tax Relief Reconciliation Act.

The credit will remain "flat" for special needs children, meaning families who adopt a child with special needs do not need to document qualified adoption expenses. A significant majority of foster children are considered special needs.

For all other adoptions the tax credit has been declared nonrefundable, only benefitting those adoptive families with a federal income tax liability.

The adoption tax credit applies to all types of adoption and has made adoption a more viable option for many families who may not have the funding to afford adoption otherwise. By preserving this credit and keeping the costs of adoption at a minimum, the incentive for parents to adopt increases, subsequently increasing the opportunity to provide more children with the loving, permanent families they deserve.

We are pleased that the adoption tax credit has been saved, but understand the importance to advocate that it be refundable, which we will do. Congress has expressed interest in long-term solutions and border tax policy reform leaving room to believe that there is a good opportunity for continued support on this subject.

For more information about the Adoption Tax Credit and ongoing advocacy strategies,

Please visit: www.adoptiontaxcredit.org .

No comments: