Considering adoption? Now might be the perfect time to start the process!
We have just found out, that the Adoption Tax Credit (ATC), which was scheduled to expire in 2010, was extended for one-year (through December 31, 2011). This is awesome news to those in the process or considering adoption. This will especially be helpful to those couples (like us) who have to travel to Ethiopia two times (adding $5,000-$7,000 to their expenses).
What is the ATC: The ATC is a critically important element in finding permanent families for children in the U.S. foster care system and the children of our world, who live without permanent parental care. The ATC makes adoption a viable option for many families who may otherwise be unable to afford to adopt.
The highlights of the credit are:
* The maximum credit was increased from $12,150 to $13,170
* The ATC is now retroactive to January 1, 2009. This represents a potential increase of $1,000 for adoptive families.
* The ATC was made refundable. If a family has no tax liability, the IRS will refund the amount due.
I haven’t read all the small print yet, but this is such good news for those (like us) who will not be able to complete their adoption process in 2010, as previously thought. Goodness, I hope we have our baby home in 2011!
We know this won't cover all of our expenses, but it's a great start. Plus, no matter what, we would still find a way to get Baby E home, regardless of the tax credit. So to us, this is just a really nice BONUS! God is good.