The Adoption Tax Credit

One of the largest hurdles to adoption for any family, including us, is the costs involved.  For a domestic adoption, its not unheard of the costs to be greater than $20,000 to$25,000; for an international adoption, with the travel costs involved, the cost is often greater.  Such is the reason why Jackie and I have (through lots of help and donations from friends and family), had 5 garage sales this year.  Its the reason why we switched our cell phones and plan, why we switched one of our cars, why we switched where an how we grocery shop - all changes to help us in saving money.  Its why we stepped way outside our comfort zone and created a fundraising page and actually told people about it (can find it here)  And while such has been successful and we've saved a great deal (and learned how to better save and manage our finances for future purposes), we know that we can't stop doing our best to save and raise money even after the adoption - to help pay off the debt and post-adoption related fees we will incur.

So tonight, why this is on my mind, I am thinking about the Adoption Tax Credit.  The Adoption Tax Credit, for the year 2012, is just over $12,000.  Obviously, its of great assistance to families that anywhere from a third to a half of their adoption costs that may be able to get back, in some form, from this credit.  While the tax credit has been extended several times, as of right now, it is set to expire at the end of this year.  A family can only take the credit in the year their adoption is finalized - and finalization usually takes place 3-4 months after the baby is born and placed with the adoptive family.  Thus, in our situation, and I'm sure for countless others, unless the tax credit is extended by Congress and the President, we just miss being able to benefit.

I know that taxes are always a touchy subject in this country.  But because the credit, like many, has a phase out as incomes become higher, it truly is a tax relief for middle class families.  Information and history about the Adoption Tax Credit can be found at the following website - http://adoptiontaxcredit.org/.  Both Jackie and I have wrote letters to our Representative and Senators asking them to support the bills (one introduced in both the House and the Senate).  Should any one be of like mind, and upon review feels so compelled, information about writing your Representative and Senators can be found here.

I know the bill in the Senate had co-sponsors from both parties.  While some may agree with the idea of the credit and some may not, I don't think it comes across as a partisan issue; so its something I would hope that both Democrats and Republicans can get behind.  So, again, if one feels so compelled, we would love (and I'm sure many other families considering adoption as well) if you would write your Representatives and Senators to urge their support to extend the Adoption Tax Credit permanently.  Its an act of Congress that could go a long way to helping to build many, many families.