Why This Is Important
The average cost to adopt a child is any where from $25k – $35k or more. Currently, for the 2011 Tax Year Adopting families are eligible for
*A maximum of $13,170 for 2011 returns
*Fully refundable as long as the adoption is initiated in 2011 or before, and finalized before the end of 2012 (domestic) or was finalized in 2011 (international)
But in 2012 the Tax Credit is going to change:
*A maximum of $12,170 for 2012 returns only
The 2012 Tax Credit will not be refundable for adoptions initiated after 2011, which means a large number of families may not be able to get any of the $25k- $35k back and possibly prevent people from adopting a child at all.
In 2013 it all goes away, no tax credit at all.
We are petitioning to extend the tax credit as currently stated in the Patient Protection and Affordable Care Act, so that more money is available to families allowing them provide a financially stable home to the adopted child.