While lawmakers in Washington consider tax reform, many adoptive families are left worrying about what this means for the Adoption Tax Credit, and rightfully so.
The Trump Administration is pushing Congress to slash tax credits. Since the Adoption Tax Credit hasn’t been pulled out for protection, many families and adoption advocates are concerned it’s on the chopping block, too.
Without the Adoption Tax Credit, countless families will undeniably face an increased financial burden when it comes to adopting a child. Nearly 75,000 families claimed the Adoption Tax Credit in 2014 alone.
Right now, adoptive families can apply for the $13,000 tax credit on their income tax. It is non-refundable and offsets a family’s tax liability. This means the amount of credit a family can use depends on their income and federal income tax liability. Some families, depending on their income and tax liability, can actually never use the tax credit; other families that don’t have enough tax liability to claim the full credit can carry over the leftover amount for up to five additional years.
Adoption Advocates with Save the Adoption Tax Credit are asking people to contact Members of Congress and urge them to save the Adoption Tax Credit.
To do so, click HERE.