Extension of Adoption Tax Credit
National Council for Adoption (NCFA) has confirmed the extension of the adoption tax credit with the following announcement:
“On December 16, 2010, Congress passed the Middle Class Tax Relief Act of 2010 (HR4853), extending the current tax cuts through the end of 2012. President Obama is scheduled to sign the bill into law today, December 17.
The Middle Class Tax Relief Act also extends the adoption tax credit.* The National Council For Adoption (NCFA) celebrates the extension of this credit, which offers a tax credit for adoption-related expenses to families that adopt domestically or internationally. This important tax policy will continue to help make adoption more affordable for American families, benefiting children available for adoption in the U.S. and around the world.
“Since 1997, the adoption tax credit has helped many families defray the often high cost of adoption, allowing them to provide permanent, loving families for countless children who may otherwise have remained in the U.S. foster care system or a foreign orphanage,â€ said Chuck Johnson, president and CEO of NCFA. â€œWe are very pleased that Congress and the President were in agreement that families and the children they adopt should continue to benefit from this specific tax credit, and saw fit to ensure that it continues to be available for another two years. As a longtime advocate for the adoption tax credit, NCFA hopes to one day see it become a permanent part of the tax code.â€
For more information regarding the adoption tax credit, please see NCFAâ€™s Adoption Advocate No. 21: â€œTax Benefits for Adoption: The Adoption Tax Credit.â€
* The current adoption tax credit is $13,170 for qualifying families. At this time, it is unclear what the exact amount of the credit will be in 2012, or whether the new legislation will allow for the current tax refund option.