Sunday, August 5, 2012

More Information About The Adoption Tax Credit

The Adoption Tax Relief Guarantee Act of 2011 was introduced in January of 2011 to repeal the sunset of the Economic Growth and Relief Reconciliation Act of 2001 with respect to the expansion of the adoption credit and adoption assistance programs, to repeal the sunset of the Patient Protection and Affordable Care Act with respect to increased dollar limitations for such credits and programs, and to allow the adoption credit to be claimed in the year expenses are incurred, regardless of when the adoption becomes final.  Currently referred to the House on Ways & Means.

 So, what does this mean?
First, the GOOD news. . .  The maximum tax credit for 2010 and 2011 was increased from $12,150 to $13,170. This applies to families who initiated an adoption in 2011 or before or finalized before 2011 for international families and before 2012 for domestic families.
The credit was made refundable, so if a family has no tax liability, the IRS will refund the amount due. The credit was extended through December, 2011.

Now for the BAD news . . . In 2012, the maximum tax credit is  reduced to $12,170 and is non-refundable.
In 2013, there will be no tax credit at all.

What you can do… Approximately 132.2 million children are orphaned every year.  Join in signing the petitioning to extend the tax credit so that more money is available to those families who want to provide permanent, loving homes to children in need. Tell your member of parliament that you want them to support the document.
HELP SAVE THE CREDIT. The Senate Finance Committee is about to vote on the “Adoption Tax Credit Guarantee Act” ;  add your name to the petition (  Contact your congressional leader to tell them that you support extending the Adoption Tax Credit Guarantee Act.

This information is from Adoption Update from Spence-Chapin.

No comments:

Post a Comment