In 2001, the U.S. Congress passed a bill that increased the tax credit for adoption from $5,000 to $10,000. This credit has been adjusted several times for inflation and now stands at $12,170. But the original bill is set to expire at the end of this year, and the credit will return to 2001 levels.

With the average domestic adoption costing $20,000 to $25,000 and international adoption costing $25,000 to $45,000 this tax credit makes it possible for many couples to adopt. Without it some couples simply would not be able to afford adoption. ...

A bill called the Adoption Tax Relief Guarantee Act was introduced in 2009 to make the tax credit from the Reconciliation Act a permanent benefit. It is still in the first steps of the legislative process and has not yet reached the House or Senate. [Source: Christa Singleton, Associated Content, March 21]

Labels: adoption_costs, legislation

Posted By: Aspen/CRC