There has been confirmation that the Adoption Tax Credit, which was scheduled to expire in 2010, was extended for one year (through December 31, 2011).
Here are the highlights of the Adoption Tax Credit changes:
* The maximum credit was increased from $12, 150 to $13,170.
* The Adoption Tax Credit is now retroactive. This represents a potential increase of $1,000 for adoptive families.
* The Adoption Tax Credit was made refundable. If a family has no tax liability, the IRS will refund the amount due.
Note: The extension of the Adoption Tax Credit through 2011, was passed as part of the health care reform bill which was signed into law by President Obama on Monday, March 22, 2010. There was some concern that the Adoption Tax Credit would be included in the reconciliation process, however we have confirmed that it is not part of reconciliation. This means that the Adoption Tax Credit is law until December 31, 2011.
Our efforts in advocating for the extension and hopeful permanency of the Adoption Tax Credit have been many. We thank those of you who have joined in these efforts for the benefits of the many children in need of families and families dreaming of children!
