Wednesday, December 16, 2009

Answering the Tax Credit Question

Here is an answer to the question about the Adoption Tax Credit.

The current federal adoption tax credit will end on December 31st, 2010, so next year. At that time it will revert to $6,000 for only special needs adoption with the lower (pre 2002) family income limit and tied to expenses.

Last time, the tax credit was going to be like this was starting January 1st, 2002, and the leaders of extending and expanding the adoption tax credit was led by agencies who charge fees and whose families need help paying those fees. There are already a number of bills that will continue the current credit. The person I talked to doesn't expect it to move forward until health care is over. In 2001, the continuation bill was in the Bush tax cuts, and that happened in the summer.

Does anyone else have more info?

3 comments:

k....mom said...

since you asked...what is an adoption tax credit?

Little Wonder said...

So, are you saying that non-special needs adoptions will no longer be able to have the tax credit applied?

The tax credit has helped tremendously for our finances with our son since I'm self employed....DD's adoption will be finalized in '10, so I guess no more kiddos for us after that, lol.

Brett said...

There's a chance the adoption tax credit will be expanded and included in the health care legislation. This all hinges on the pro-life, pro-adoption democrats and whether they accept the current language in the bill. See Bob Casey's amendment. http://casey.senate.gov/newsroom/press/release/?id=b30df5d0-3970-4e54-86c8-e5ad8e7391a4