Adoption Tax Credit Expanded!

posted by Dr. James G. Hood
Saturday, April 3, 2010

The adoption tax credit has been expanded and extended. On March 23, 2010, the President signed into law the Patient Protection and Affordable Care Act (P.L. 111-148). Prior to this law, the tax credit was set to expire December 31st of this year. Section 10909 of the bill addressed the adoption tax credit. The credit is expanded in the following ways:

·      The amount has been increased from $10,000  to  $13,170 for tax year 2010.

·      The credit was made refundable for all types of adoptions, allowing families with small tax liabilities to better access the credit (adoptions finalized in 2010 & 2011).

·      The credit will be extended through December 31, 2011.

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