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.