Adoption Tax Credit Strengthened!
March 29, 2010
As part of the recent healthcare overhaul bill, Congress included favorable changes to the Adoption Tax Credit for adoptive families! While the details are still being determined, our partners at Joint Council for International Children’s Services summarize the changes as follows:
- The maximum credit was increased from $12,150 (original 2010 amount) to $13,170 (the amended amount).
- The credit is extended through December 2011.
- The credit was made refundable— if a family has no tax liability, the IRS will refund the amount due.
Full text of the bill is available from the Government Printing Office (pdf version). The Adoption Tax Credit is mentioned on pages 903-906.
Note: The IRS has not yet released any guidance on the change. Again, always refer to a CPA for questions regarding taxes and the tax credit.
