The IAC stands in full support of the Adoption Tax Credit Working Group, the result of a number of organizations and institutions who have come together to advocate for a permanent adoption tax credit. The tax credit was introduced in 1997 and has helped thousands of families afford the costs associated with adoption. The goal is to have a tax credit that is:

• Inclusive – All types of adoption should receive the credit: domestic, foster, and intercountry
• Permanent – The credit should be a permanent part of the tax code, not subject to expiration
• Refundable – Low-income families should receive the credit regardless of tax liability
• Flat for special needs – Full credit for special needs adoption, in recognition of the post-finalization costs associated with these adoptions

On April 17th the Making Adoption Affordable Act was introduced as the first legislation to accomplish these goals. The bill would set the adoption tax credit at $13,360, and make it refundable and permanent.  Referring to the high costs of housing children in the foster care system, sponsor Rep. Braley of Iowa stated at his press conference, “When a policy puts more kids in loving homes and also saves taxpayers millions of dollars in the process, expanding it should be a bipartisan no-brainer.”

To learn more about the efforts of Save the Adoption Tax Credit visit http://adoptiontaxcredit.org/

Dawn Davenport of Creating a Family also reports that, “…according to the Government Accountability Office, 68% of the nearly 100,000 returns claiming adoption tax credits were audited. We have no way to tell what percentage is being audited this year, but given what we are currently hearing, I would say it is running about the same as last year.” Further, the IRS claims that those who aren’t audited can expect to receive the refund in three weeks, though people are reporting longer waits. If you are audited, it is estimated to take up to 14 weeks to receive the refund.

View the full post on Creating a Family’s blog: Adoption Tax Credit Delays