You may have seen the US Supreme Court upheld "Obamacare" today. What you may not know is what this does to the adoption tax credit.
In the overhaul, Congress boosted the $12,150 federal adoption tax credit by $1,000 starting this tax year. It also is refundable, meaning you'll get the credit whether you owe taxes or not.
Good news for families wanting to adopt that may have been stymied by the cost.
Didn't know that- thanks for sharing!
ReplyDeleteI may be wrong, but I think the obamacare provision you are referring to upped the amount $1000 and made the credit refundable for 2010 and 2011 tax years only. It’s one of the provisions of obamacare that was already implemented. Even with the supreme court ruling on obamacare, my understanding is that the tax credit is not refundable for the 2012 tax year (if you adopt this year) and still phases out after this year. If I am reading it wrong that would be awesome as I hate to see the tax credit go away.
ReplyDeleteIn a nutshell, the Court ruling just affirms Obamacare's provision of the tax credit and increases the assistance exclusion by $1,000. The tax credit is scheduled to sunset after 2012, and will revert back to $5k/child beginning in 2013. So adoptions completed in 2012 should still be eligible for the tax credit.
ReplyDelete