The Adoption Tax Credit, which was scheduled to expire in 2010, has been extended for one year, through 2011.
The Adoption Tax Credit will see several positive adjustments, as confirmed by Joint Council on International Adoption Services: The maximum credit will increased from $12,150 to $13,170.
The Adoption Tax Credit is now retroactive to January 1, 2009. This represents a potential increase of $1,000 for adoptive families.
The Adoption Tax Cred was made refundable. If a family has no tax liability, the IRS will refund the amount due. Please consult a tax professional for all of your tax questions.
The extension of the Adoption Tax Credit through 2011, was passed as part of the health care reform bill which was signed into law by President Obama on Tuesday, March 23, 2010.
There seems to be some confusion about the retroactive date. Most sites are reporting it as January 1, 2010 which makes more sense from an IRS point of view. Basically, all adoptions finalized in 2010 and 2011 will be affected by the new refund. I can't even tell you how excited I am about this! It is SUCH good news for the adoption community.
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