The Republicans’ new tax plan will eliminate the federal adoption tax credit. Contact your representative today to change this and help other adoptive families.
Do you know if your state offers a separate adoption tax credit or reduction? Find out here and, if they don’t, contact your representative today.
The Federal Adoption Tax Credit is vulnerable and may be eliminated as part of tax reform — and we need your help to save it!
Share these 10 creative ways to finance your adoption costs with someone who’s in the process of adopting!
With tax season around the corner many of our families are wondering what the Adoption Tax Credit is and how it works. Below we have provided a brief explanation of the Adoption Tax Credit, the updated amount available to families for the 2016 tax season, and an infographic to help families understand how the Adoption Tax Credit works.
What is the Federal Adoption Tax Credit?
The Federal Adoption Tax Credit can help families offset the costs of qualifying adoption expenses, making adoption possible for some families who could not otherwise afford it. Families who adopted a child, or tried to adopt a child, and paid qualifying expenses may be eligible for the credit.
With the passage of the American Taxpayer Relief Act of 2012 the Adoption Tax Credit became a permanent part of the tax code. However, the tax credit is not refundable, which means that only those individuals with tax liability (taxes owed) will benefit.
The maximum adoption tax credit for 2016 is $13,460. The Adoption Tax Credit limit is based on modified adjusted gross income (MAGI) and is recalculated each year based on current cost of living. For the 2016 Adoption Tax Credit, the maximum amount available will begin to phase out for families with MAGI above $201,920 and will be unavailable to families with incomes around $241,9200 or above.
Admittedly, the cost of adoption is fairly high and it can be difficult for some adoptive families to pay for their adoption without going into debt. While tax credits, adoption grants and employee benefit programs can help alleviate some of the costs they don’t always cover everything.
In these cases, adoptive families often turn to fundraising to help pay for the cost of adoption. With the help of Julie Gumm’s Adopt Without Debt, we have complied a list of 18 adoption fundraiser ideas that can help pay for your adoption.
Adoption is not just a huge emotional investment, but a financial one as well – and if you’re a family just learning about adoption, you’re probably wondering how to start budgeting.
With all of the fees and services involved, private domestic adoption can cost families tens of thousands of dollars, placing financial stress on couples and individuals who are ready to grow their families. Fortunately, prospective parents have options when it comes to financing their adoption. One increasingly common and highly effective tool is crowdfunding.
Each year, the Dave Thomas Foundation for Adoption publishes the 100 Best Adoption-Friendly Workplaces list, recognizing employers who support adoption and provide competitive adoption benefits to their employees. See which companies made this year’s list, and find tools and resources to encourage your employer to offer adoption benefits.