We heard about this triumph earlier this week, and have followed the progress of advocates for the tax credit for a few months now. Do YOU know where your state Senators & Representatives stand on the issue? We know where ours do! After quite a lot of muddled information, today we finally got a little more informative update from a local international adoption agency (below):
“Late Tuesday night, Congress passed the American Taxpayer Relief Act which will become law upon President Obama’s signature. Amongst the provisions of this Act was an extension of the adoption tax credit.
Complete details of implementation are still to be seen, but the bill permanently extends the adoption tax credit which is set at $10,000, but may once again be scaled for inflation, potentially bringing it to near the 2012 amount of $12,650. Families with incomes under $150,000 will receive the full credit and it will gradually phase out for higher incomes.
Congress is to be commended for remembering children and families as a priority. The adoption tax credit is an important layer of support for families who adopt. The credit helps ensure children find their way to safe, stable, loving, and permanent families” says Megan Lindsey of the National Council For Adoption.”
One of the issues of confusion remaining is that the tax credit is “nonrefundable.” It was only actually refundable in 2010 & 2011 (I think). The refundability of the credit means that more people are helped if it is refundable. Not sure what it means when it is not, or what that has to do with the $12,650 mentioned above. We’ll keep our fingers crossed.