Posted by: icmadoptionnetwork | January 3, 2013

Adoption Tax Credit

Over the last year, we have been trying to get as many people as possible to contact thier representatives and advocate for the Adoption Tax Credit to be renewed. The credit was set to expire on December 31, 2012. Well… it was worth it! The new American Taxpayer Relief Act signed by congress to avoid the fiscal cliff makes the Adoption Tax Credit permanent! The maximum amount has not yet been released, but it will most likely be more than $10,000. The only negative is that the credit is not refundable, but only applies to the amount of federal income taxes you have paid that tax year. So for instance, let’s say you pay $6,000 in federal income taxes the year your adoption is finalized. Then your tax return is for $4,000. The remaining liability, for which you could apply to receive through the Adoption Tax Credit, is $2,000. Typically in the past, the government has given a family up to five years to reach the maximum amount allowed to be refunded. I am not sure yet what the time frame will be under this new bill. After the specifics on the new law are more known, then I would encourage you to contact your accountant and see how this affects your family directly.

But in the meantime, let’s just praise the Lord that the Adoption Tax Credit has been extended and made permanent!!

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: