Many of us held a collective breath last week. The Adoption Tax Credit was set to expire after 2012. Would we see a last minute reprieve? Fortunately, yes! On January 1st, 2013, Congress passed the American Taxpayer Relief Act of 2012. Soon after, President Obama signed it into law. Included in this legislation was a permanent extension to the Adoption Tax Credit.
Kathleen Strottman, Executive Director of the Congressional Coalition on Adoption Institute (CCAI) shared her views, “By making the adoption tax credit permanent, Congress has renewed its’ commitment to finding safe and loving homes for children in need. We are thrilled that three of the four priorities established by the Executive Committee were included in this legislation. Unfortunately, without making the adoption tax credit refundable, many adoptive families of foster children with special needs will not be able to benefit from the credit.”
What this means is, you may apply the credit towards what you owe in taxes this year, but it will not increase the amount of your refund. You may deduct adoption fees, court costs, attorney fees, and travel expenses (including meals and lodging). You may also include any other expenses directly related to your adoption. For more information on how to fill out the required forms, check out www.irs.gov.
This comes as great news for Lifetime Adoption! We want loving families for all children. No one should ever feel they can’t afford to adopt and this tax credit continues to provide some needed financial relief. Are you interested in adopting, and now have the knowledge of the tax credit to get you going? Apply for free at: www.LifetimeAdoption.com.