The Adoption Tax Credit

We all know that children, as your dependents, are a tax deduction.  My husband keeps joking with me to have the baby on December 31st since that will grant us a tax deduction almost immediately.  But even if I don’t have the baby on December 31st of this year, I know I still will get the tax deduction for next year.  Parents who are going through the adoption process to grow their families may not be that lucky.

We infertilites know that there is more than one way to have a family.  Welcoming a child through adoption is a completely valid and beautiful option for many who struggle with having children of their own.  And between 1997 and December 31, 2012, parents could claim adoption credit on their taxes for both adopting a child and for expenses related to the adoption (such as court fees and travel expenses).  I’m specific about the end date because that is when the full credit is due to expire, unless Congress acts and renews the credit or decides to make it a permanent part of the tax code.  There are bills in both the House and Senate to accomplish just that – but a do-nothing Congress in the middle of an election season is not quick to move on much, except leaving town for vacations.

Starting January 1, 2013, only $6000 would be available to adoptive parents as a nonrefundable credit for expenses of special needs adoptions only.

Take a minute to find out what US Representatives are about to be on the ballot tomorrow in your state or district.  Are any of them one of the co-sponsors of the Making Adoption Affordable Act?  (Find the list here).  How do your US Senators stand on renewing this tax credit?  Then on Wednesday, November 7th, when we know who will be leading our country, be sure to write to your congressman/woman and senators and let them know it’s an important issue for you that they support these bills.



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