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Adoption Tax Credits
You may be able to take a tax credit for qualifying
expenses paid to adopt an eligible child (including
a child with special needs). The adoption credit
is an amount subtracted from your tax liability.
For more information, visit the following page
on the IRS website and/or speak with a professional
tax preparer:
http://www.irs.gov/taxtopics/tc607.html
Adoption Tax Credit
Extended
(Update
Reprinted from JCICS)
FOR PUBLICATION AND DISTRIBUTION
Joint Council Update
Program Government Relations
Date March 24, 2010
Regarding Adoption Tax Credit
Extended
Dear Colleagues,
Joint Council is pleased to confirm that the
Adoption Tax Credit (ATC), which was scheduled
to expire in 2010, was extended for one-year
(through December 31, 2011). The highlights
of the ATC are;
- The maximum credit was increased from $12,150
to $13,170,
- The ATC is now retroactive to January 1,
2009. This represents a potential increase
of $1,000 for adoptive families.
- The ATC was made refundable. If a family
has no tax liability, the IRS will refund
the amount due.
The extension of the ATC through 2011, was
passed as part of the health care reform bill
which was signed into law by President Obama
on Monday, March 22, 2010. There was some concern
that the ATC would be included in the reconciliation
process, however we have confirmed that it is
not part of reconciliation. This means that
the ATC is law until December 31, 2011.
Joint Council along with many other advocates
and adoptive families have long advocated for
making the ATC permanent. We applaud Congress
and the Obama administration for the extension
and continue to call for a permanent tax credit.
The ATC is a critically important element in
finding permanent families for children in the
U.S. foster care system and the children of
our world, who live without permanent parental
care. The ATC makes adoption a viable option
for many families who may otherwise be unable
to afford to adopt. We again applaud the extension
and improvements to the Adoption Tax Credit.
Best wishes,
Tom
TOM DIFILIPO | President & CEO | +1-703-535-8045
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