Friday, March 26, 2010

Adoption Tax Credit Extended & Increased!

Good news for families in the process of adopting! The adoption credit and adoption assistance program will be expanded and increased. The Adoption Tax Credit will see several positive adjustments. The new law increases the adoption tax credit and adoption assistance exclusion by $1,000, makes the credit refundable, and extends the credit through 2011. The enhancements are effective for tax years beginning after December 31, 2009.

The increase is “retroactive,” meaning that any adoption occurring after January 1, 2010 is eligible for this higher credit. The credit is now refundable. This means that even families that owe zero taxes can receive the full tax credit in the form of a tax refund to help with their adoption-related expenses.

Thank you to everyone who contacted their representatives and senators about extending the Adoption Tax Credit. This is great news for families across the U.S. who are seeking for ways to afford adoption. Without this tax credit, more children could potentially end up in the system, because fewer families would be financially able to adopt.

Please make sure to consult your tax professional for questions and more details. For more adoption funding options including grants and loans, visit


Anonymous said...

the wording in the bill is for "special needs adoptions" does the child have to have a documented special need to qualify for it?

teresa in wv

Mardie Caldwell, C.O.A.P. said...

Hi Teresa,
That is not our understanding, but you may want to contact your CPA to be sure.