Adoption Tax Credit Extended and Improved

24 03 2010

Joint Council is pleased to confirm that the Adoption Tax Credit (ATC), which was scheduled to expire in 2010, was extended for one-year (through December 31, 2011).   The highlights of the ATC 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.

The extension of the ATC 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 ATC would be included in the reconciliation process, however we have confirmed that it is not part of reconciliation which means the ATC is law until December 31, 2011.

Joint Council along with many other advocates and adoptive families have long advocated for making the ATC permanent.  We applaud Congress and the Obama administration for the extension and continue to call for a permanent tax credit.

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.  We again applaud the extension and improvements to the Adoption Tax Credit.




14 responses

24 03 2010
Jennifer Gibson

Our adoption was final in August of 2009. Would we qualify for the increased tax credit and is it refundable for us. We have searched and what we see makes us think that it is for those who have finalized adoption in 2010. Can’t find the final legislative language. Any guidance would be extremely helpful. Thanks.

24 03 2010

I was wondering if 1. This means for adoptions that were finalized from 1/2009 and on and 2. If those of us who had adoptions in previous years (mine finalized 6/2008) but are carrying over remaining credits will be able to take advantage of a refund for the remaining amount?


1 04 2010

I had the same question. The IRS doesn’t have the Health Care Reform legalities in place yet, at least not the phone reps. They have put my quesion into their research area and I will hear back in the next week or two. I will post again.

24 03 2010

I wish they would limit the tax credit only to those families adopting from the U.S. Foster Care system. There are too many questionable and unethical practices in the International Adoption system as well as the U.S. domestic adoptions to guarantee this tax credit is truly being used to benefit children.

25 03 2010

So you want to punish all the loving families and, worse, all the estimated 1,000,000 family-less children worldwide because of a relatively few unethical individuals and organizations? Come on, is that stance reasonable or ethical!

I’m a good example of why this tax credit is justifiable and important. I’ve just adopted a child over 8 years old from a developing country. This child, at her age, was quite unlikely to be adopted and now will have a chance to flourish to her full potential.

My adoption of her also frees up the orphanage to care for another child seeking a family.

I have years of experience working in developing countries and understand many of the political, economic, and sociocultural issues. My life is much more fulfilling, now that I can be a parent, yet I WOULD NOT BE ABLE TO DO THIS WITHOUT FINANCIAL ASSISTANCE AND THIS TAX CREDIT!

Should the right to adopt internationally be left only to the wealthy and the crooks?

Please reconsider your opinion after researching the facts. On behalf of all children seeking families, I thank you.

25 03 2010

Thank you for your comments and standing up for the millions of orphans around the world. All children deserve loving families.

25 03 2010

Hundreds of HIV positive children around the world are now finding permanent loving families in America through international adoption. The tax refund will help many more of those children in 2011. They are not less deserving of families than American children.

27 03 2010

“All the children who are held and loved will know how to love…. Spread these virtues in the world. Nothing more need be done.” -Meng Zi C300BC

We are responsible to taking care of children ALL over the world…not just the USA. If you choose to adopt domestically great but don’t punish those who choose a different route to adoption.

30 03 2010

“I wish they would limit the tax credit only to those families adopting from the U.S. Foster Care system. There are too many questionable and unethical practices in the International Adoption system as well as the U.S. domestic adoptions to guarantee this tax credit is truly being used to benefit children.”

My wish is that people don’t generalize and (and that people actually have a few facts & think before laying judgement). There are several well-developed, ethical and well-established international programs. This tax-credit will go along way in benefitting my family, my son. I can use the money to pay off the loans used for the process and starting saving for my sons college fund like most people!

25 03 2010

Everything I am reading (including the wording the actual bill) says this credit is retroactive to Jan 1, 2010. Where do you get the Jan 1, 2009 date from? We finalized in 2009, so if it is at all possible to take this refund for last year that would be wonderful. Every tax website I find though, states Jan 1, 2010 as the retroactive date.

29 03 2010
M + B pages 904-906

The final legislative language:
EFFECTIVE DATE.—The amendments made by this section
shall apply to taxable years beginning after December 31, 2009.

31 03 2010
Adoption Tax Credit Extended! « LSSMN Intercountry Adoption's Blog

[…] more information about the new and improved adoption tax credit please visit Be the Answer page. Possibly related posts: (automatically generated)Adoption Tax Credit Extended Until […]

10 02 2011

I was wondering how the tax credit will work since it is only good through 12/31/2011. My husband and I are getting ready to adopt and so if we adopt in 2011 then do we claim this on our 2010 taxes or will this fall under our 2011 taxes? I am thinking the 2011 taxes but my husband is convinced we can claim this on our 2010 taxes. Does anyone know?

10 02 2011

If you are referring to an international adoption, you cannot claim the refund until the adoption is finalized. See this video:

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