Update: Federal Adoption Tax Credit Extended

Posted: March 24, 2010 in Adoption

Good news for families adopting and hoping to take advantage of the Federal Adoption Tax Credit – the sunset provision in the current legislation has been delayed by one year to the end of 2011, and the credit has been increased to $13,170 for adoptions completed this year or next year. The extension was included as an amendment to the health care reform bill (read it here on pages 903-906). It is not clear to me what it means when it says the credit is refundable. As always, check with your tax advisor regarding any questions you may have about the adoption tax credit.

Thank you to Abba Fund’s Facebook page for bringing this news to my attention.

  1. Amber Logan says:

    From what I’ve read on other blogs/news sites, it sounds like the “refundable” part means you can actually take advantage of the entire amount in ONE YEAR because anything above and beyond your tax liability gets paid to you directly as your refund. I don’t KNOW if that is true, but that is the word on the street!

  2. Terry says:

    This is awesome news!! I was sooo happy to read this and hoping that it would be extended! Thanks for sharing such great news!
    I soooo owe you an email. I’m very sorry for not catching up sooner. Watch your inbox – I’ll be there soon! 🙂

  3. Cathie says:

    Yes Amber…that is true. If you adopt before the deadline..the adoption has to be final. But the remaining balance is refundable.

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