The adoption tax credit, which can be claimed for eligible adoption-related expenses, has helped thousands of American families offset the high cost of adoption since the credit was established in 1997. It has made adoption a financially viable option for many parents who might not otherwise have been able to afford adoption, allowing them to provide children with loving, permanent families. With over 100,000 children in the U.S. foster care system currently eligible for adoption, and an ever increasing number of orphaned and abandoned children worldwide languishing in institutions, the continuation of the adoption tax credit is vital to providing love, safety, and permanency through adoption to as many children as possible.
History of the Adoption Tax Credit
The adoption tax credit has historically been a non-partisan issue, and is supported by the current administration as well as a majority of members of Congress.
Although several different bills have been introduced to establish the adoption tax credit and make it a permanent part of the U.S. tax code, Congress has never passed legislation specific to the credit itself. Instead, the adoption tax credit has been extended every year since its initial passage as part of the Small Business Job Protection Act of 1996.
In December 2010, the Tax Relief Act extended the adoption tax credit through tax year 2012; for this year, the credit is once again nonrefundable.
The current adoption tax credit is set to sunset on December 31, 2012. If it is allowed to expire, after tax year 2012 the adoption tax credit will revert back to a maximum tax credit of $6,000 for parents adopting children with special needs, and there will be no adoption tax credit available for all other adoptive parents beginning in tax year 2013.
For the full Adoption Tax Credit Advocacy Kit, click here.
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China | 3 years old | Girl
Fiona is a precious little one who is about to turn 3 years old! She was born with Down’s Syndrome and a heart defect known as a PFO. When she was 1 years old, she would sit up on her own, crawl and babble. At the age of 18 months she could stand up with a little support and was babbling and saying simple words. Fiona has been receiving rehabilitation services and she seems to be doing great! She is walking for longer distances while holding onto some support. Fiona is described as being compliant, cute and affectionate. Although her speech is slightly delayed, communication does not seem to be an obstacle for her. Contact one of our matching specialists today if you’d like to learn more about Fiona!
You can contact the China Home Finding Team at (512)323-9595 if you would like to learn more about adopting Fiona. We hope we are able to find Fiona her Forever Family soon!