As we launch our first blog spot let us look at the topic of concern for many prospective adopters; will the Adoption Tax Credit be there for our adoption and us?

ADOPTION COSTS

Nancy Johnson, MSW, Agency Director and I, Maureen Reilly, BS, Adoption Coordinator have experienced adoption in our personal lives and professionally for over 30 years. We have learned that the process to adoption requires intense social work and commitment to finding that good fit for every child. 

Adoption services by private agencies incur costs and fees for the adoptive couple. Prior to the Adoption Tax Credit, and with the exception of a grants and fundraisers, the adopters pay straight out of pocket. I often share with adoptive families the “when I was adopting” stories and this is no exception.  Nearly 30 years ago adoption costs could likely be relative to the cost of well-made midsize car and most often are still. The only help we had was from supportive family members or to take out a personal bank loan.  Thank goodness adoption funds are easier to access through line of credits on home loans, the aforementioned grants and fundraisers, and the Adoption Tax Credit.

The Adoption Tax Credit has helped countless families move toward their dream of parenting, while reducing the financial burden that might otherwise prohibit them from pursuing adoption to reach that goal. 

ADOPTION TAX CREDIT
The Economic Growth and Tax Relief Reconciliation Act currently is scheduled to sunset on December 31, 2010.  A recent article in the April 2010 Journal of Accountancy provides thorough and easy to understand information on the current adoption tax credit applications. The title is Tax Treatment of Adoption Expenses by Sonja Pippin, Ph.D. and can be found at www.journalofaccountancy.com. 
 

To learn more from the experts you may also check this link:  

 http://taxes.about.com/od/deductionscredits/qt/adoptioncredit.htm 

I want to encourage everyone to contact their senator or representative to ask them to vote in favor of extending the adoption tax credit.  Here is the link if you need to find your representative or senator’s contact information:  http://www.govtrack.us/congress/bill.xpd?bill=h111-213   

If you are new to adoption and are unaware of this great credit please continue your research on how to receive a return on your adoption expenses through the web or by asking an accountant.