Wonderful news for children and families brought together through adoption! On January 2nd, 2013 the American Taxpayer Relief Act which includes a permanent extension of the adoption tax credit and was signed into law.
The Adoption Tax Credit will help families ease the financial burden related to the adoption of a child or children from the foster care system, through domestic private or agency adoption, and through international adoption. The details of the Adoption Tax Credit are yet to be available. However, it is our understanding that the adoption tax credit of $10,000 (plus adjustment for inflation) is a dollar-for-dollar reduction of your tax liabilities. Families with incomes under $150,000 will be eligible for the full tax credit, which will gradually phase out for higher incomes. Adoptive families should consult their tax advisor or CPA to assist them in understanding how the tax credit may impact them.
This Adoption Tax Credit will help thousands of children (foreign and domestic) every year to join loving, permanent families. The tax credit will make domestic and international adoption more affordable for families, thus ensuring that more families will be able to provide a forever family to a child or children in need. We are thankful for the continuation of the Adoption Tax Credit.
If you are interested in adopting a child, domestically or internationally, please contact Family Connections, Inc. (an authorized New York State adoption agency) at 1-800-535-5556 or renee@adoptfamilyconnections.org.
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