Adoption Tax Credit

As reported here last week, the Adoption Tax Credit was slated for repeal last week when the Republican tax plan was unveiled. After a flurry of lobbying from pro-adoption and pro-life groups, ATC is off the chopping block.

The House Ways and Means Committee released details of the new Republican-led tax plan, which makes two significant changes that would lessen the benefits available to adoptive parents. The first change is a complete elimination of the Adoption Tax Credit (ATC), a one-time tax benefit available for parents who adopt from foster care, internationally and through private domestic adoptions.

Many people have been told they do not qualify for the Adoption Tax Credit because they had no expenses. This is simply not true! Have you adopted from the foster care system?

In Washington there are regular reports of senators meeting to create a budget compromise that could be taken up after the election. Some of the discussions are more public than others, and it is uncertain how much of it will turn into real action.

The Federal Adoption Tax Credit (ATC), which helps defray the sometimes high administrative fees associated with adoptions, could soon expire if congress doesn’t vote to extend the credit by December 31.