tax credit

I’ve been meaning to post about this topic for a long time, but even yesterday’s post about adoption expenses didn’t remind me to do it until after the fact.

As many might already know, we have a federal adoption tax credit here in the U.S. This is a tremendous assistance to most adoptive families, because it reduces a fair amount of the significant cost. We still have to pay the expenses up front, but after the adoption is finalized, we can apply the tax credit and, in theory, get some money back. (A credit is a lot better than a deduction, because it directly reduces your tax liability, instead of reducing your income upon which your liability is based. See, I knew there was a reason why I took an income tax course in law school.) While Craig and I would somehow find a way to make this work one way or another, the fact of the matter is that we are relying on some of this money coming back to us through the tax credit.

However, the federal tax credit is set to expire in December 2010. And that’s not good!

Thankfully, legislation (H.R. 213) has been introduced in the U.S. House to extend the tax credit. But it doesn’t seem like very much attention has been paid to it. So here’s what you can do to help: It only takes a couple of minutes to send an email or make a phone call to your elected leaders in Washington. They need to hear from us, loud and clear, that the tax credit should be extended.

[Oh, man. I just realized who introduced this bill (well, along with 108 co-sponsors). Hmmm. I’m not sure what I think about that… but I guess I’ll deal with it if it means we get to keep the tax credit.]

By the way, while I’m on this topic, I should note that we also have a (much smaller) state tax credit here in Maryland, and Craig’s employer offers $2500 in adoption assistance as well. So, while we do have to struggle to come up with the money to pay for everything up front, it is good to know that a fair portion will hopefully come back to us in the end.

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7 Responses to tax credit

  1. Jenny says:

    thanks for posting this. i’ve known it was set to expire and i hope everyone sends an email or calls! it’s so sad that they’d even think about not continuing it!

  2. Kelly Cole says:

    Good idea to post this! I can’t believe Joe Wilson is the bill’s sponsor. Sheesh.

  3. we are *so* relying on that tax credit! esp since all of our expenses to bring Olive home occurred in 2008, we weren’t finalized until 2009, and can’t get the help until 2010!!! we will have waited for nearly two years by the time we get that much-needed help. and i hope that others understand how unbelievably helpful this credit can be to adoptive families!!!

  4. sue says:

    i also can’t believe that joe w introduced that bill. that’s plain weird. we sent an email in awhile ago to our representatives. if you go to my blog, i have a widget that you can add to your blog to spread awareness, if you want.

    we are counting down the days to finalization when we get a $1,000 in adoption assistance from my husband’s employer. we are hoping to use that for COC costs and a passport for Cohen.

    and you are right, it makes adoption so much easier to know that you have the credit coming. let’s hope it stays past 2010!

  5. Jennifer says:

    I have had a post-it note on my calendar to write a letter to my state rep about this…it’s great that you also get employer and state assistance…we’re just counting on that federal credit – everything else is up to us, ugh! Thanks for the reminder about the tax credit letter I need to write!

  6. Christine says:

    Thanks for posting this! I’ve been meaning to be proactive on this front for a few months now… and well, you can guess how that went!

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