Happy holidays, Holt families! On Friday, December 17th, President Obama signed the 2010 Tax Relief Act, a package of income tax, estate tax and unemployment provisions – including one huge benefit for adoptive families. This act extends the adoption tax credit through 2012!
The adoption credit would have sunset in 2011, but now families filing through 2012 may take this credit for adoption-related expenses – reducing their tax bill up to $13,170 in 2011 and $12,170 in 2012.
For families filing in 2011, the tax credit includes one additional benefit: it’s refundable. This enhancement is not a feature of the Tax Relief Act, but rather the Patient Protection and Affordable Care Act – the massive health care reform legislation enacted earlier this year.
Although the credit will vary for adoptive families, the ultimate outcome is the same. It eases the financial burden of adopting internationally – enabling more orphaned, abandoned and vulnerable children to have permanent, loving families. And for that, we celebrate.
To learn more about these benefits, visit the North American Council on Adoptable Children.