The signing of the new health care bill brings positive changes for the adoption tax credit. The bill H.R. 3590 includes a provision to extend the adoption tax credit until December 2011. The tax credit has also been increased from $12,150 to $13,170 for adoptions occurring after January, 2010. The health care bill also allows the tax credit to be refundable.
This new tax law means that adoptive parents can apply up to $13,170 of their adoption expenses toward their taxes owed, thereby decreasing the amount owed overall by this amount. In the event that a family owes less than the tax credit amount stated, they may receive some or all of the balance as a refund on their Federal taxes.
We appreciate all families that who lent their voice to help extend this tax credit beyond its original expiration date of December 2010, and we hope to one day see this tax credit made permanent. These changes to the tax credit help make adoption more affordable for families and, in turn, helps more children find their forever family! For more information on the tax credit, please visit the IRS website at: http://www.irs.gov/taxtopics/tc607.html
