Adoption News

The Adoption Tax Relief Guarantee Act Preserves The Tax Credit As Indexed Up To $10,390 For Qualified Adoption Expenses

Continuing to relieve the tax burdens of the American family remains one of the primary goals of this Congress. Without this measure, families which adopt children would lose $1.2 billion in assistance by 2014 while others may choose not to adopt at all. The tax relief passed by Congress in 2001 provided a $10,000 credit for adoption expenses in addition to other adoption incentives. However, because of a Senate budget rule, these incentives expire in 2010. The Adoption Tax Relief Guarantee Act preserves the tax credit as indexed up to $10,390 for qualified adoption expenses. In the case of a special needs adoption, the full credit can be claimed, regardless of actual expense. Without this legislation, the credit will fall back to $6,000 for special needs adoptions with no credit for other adoptions. Lastly, the current law provides a credit for families with combined incomes up to $150,000. If not extended, the income gaps for adoption credit eligibility will fall to $75,000. Currently, there are more than 1.6 million adopted children under the age of 18 in America, comprising 2.5 percent of all children. Adoption costs range from $2,500 to more than $40,000 depending on the nature of the adoption. By providing further tax relief to those who adopt, we have once again made an investment in the American family. As we continue to encourage mothers unable to care for their unborn child to give birth and allow their child to be adopted, it is equally important to make the process easier for the families who choose to adopt. With more than 532,000 children in publicly funded care, any incentive to adopting in America is a welcomed and blessed effort.
 

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	Did You Know?
	Most adoptive parents are two parent families Most adoptive parents are two parent families aged 31 to 40. A growing number of parents are aged 41 to 49. Most parents attended or completed college. Children can be adopted from other countries Adopting children from all over the world has become something U.S. residents and citizens have been doing more and more when starting or expanding their families. Over 20,000 inter-country adoptions are taking place per year in addition to the more than Adoption assistance is available Monthly or one-time only subsidy payments to help adoptive parents raise children with special needs. These payments were initially made possible by the enactment of the Adoption Assistance and Child Welfare Act of 1980 (P.L. 96-272) which provided Federa