At WACAP, we know that tax time can put a lot of stress on families, but those who have adopted recently can breathe a little easier thanks to recent changes in the Federal Adoption Tax Credit. The health care bill passed last March not only increased the credit to a maximum of $13,170, it also made the credit refundable so that lower-income families can claim it, among other things. This means that if your family spent $13,000 on your adoption and has a tax bill of $4,000, you can deduct your tax liability of $4,000 from your $13,000 adoption expenses and receive a refund of $9,000!
Additionally, certain families who finalized the adoption of special needs children all the way back to 2003 may still qualify for refunds. Learn more here.
Of course, we're adoption experts, not tax experts, so we encourage you to read this article from the December 2010 issue of Adoptive Families magazine and consult your tax preparer for further information.