Angel Adoption a national infant adoption center, today announced that the federal government has improved and extended the Adoption Tax Credit until December 2011, and is retroactive to January 1, 2010. The credit applies to any domestic or international adoption. It also applies to children with or without special needs.
Many adoptive parents yearn to share their love and lives with a child of their own. They’re perfectly able to support and care for a child, but shy away due to the initial costs associated with adoption. The good news is that there are tax credits that can ease the financial load of adoption and they’re available to a large portion of the population.
The maximum credit is now $13,170 per child, which can significantly defray the costs. Those with incomes under $182,520 can qualify for the full credit. Those making $182,520 to $222,520 qualify for a partial credit. Families with a yearly income of more than $222,520 do not qualify for the credit.
“The biggest difference for adoptive parents is that the new credit is refundable. Previously, if their adoption costs exceeded the allowable limit, parents had to spread the costs over a period of up to five years to take full advantage of the credit. That’s no longer true”, said Carolyn Walker, Founder of Angel Adoption Inc.
With the new changes, if your adoption costs exceed the allowable limit, the difference will show as a credit on your income tax. An additional benefit is that the tax credit is reimbursed dollar for dollar. It isn’t prorated. You can also take the credit if the adoption isn’t finalized. The credit can be carried forward for up to five years if need be, or until it’s used, whichever comes first.
Adoption is a major life event and the financial costs can be significant. However, to facilitate adoptions, the federal government provides tax credits to help families who have opened their homes and hearts to children through adoption. There’s no reason to shy away from adopting and every reason to enrich your life and the life of a child.
About Angel Adoption
Angel Adoption is a full service, affordable domestic infant adoption center specializing in connecting the right adoptive parents with caring birthmothers who want their children raised in a safe, loving family.