As many of you know, the Adoption Tax Credit (ATC) is vulnerable and may be eliminated as part of tax reform – and we need your help to save it. Join us as we work to keep pressure on Congress to save the credit that makes it possible for all families to adopt.
We are holding two fly-ins in the next two weeks to talk to Members of Congress in person about the tax credit. Help us by sharing your story and creating a surround sound of voices defending the credit…and help us spread the word within your network! The great new information and advocacy tools at AdoptionTaxCredit.org make it easy.
Now is the time for anyone touched by adoption to tell their story, and let their legislators know what the Adoption Tax Credit has meant for them and their families. Real voice matters – legislators will only #SaveTheATC if they understand the real-world impact and feel that their constituents support it.
Seth* is a sweet 16-month-old little boy who was born full term at 38 weeks, weighing 6.7lbs. He enjoys taking baths, being held and carried, and breaks into a huge grin when playing. He currently lives with a foster family that provides him with the nurturing, attentive care he needs to achieve critical developmental milestones. Seth is learning lots of new things in the care of his foster parents, including his most recent achievement — learning to walk! He likes to smile spontaneously, and will often laugh and coo.
Seth had some prenatal alcohol and tobacco exposure, and is being observed for subclinical lower muscle tone and mild developmental delays. At the beginning of this year he was assessed to be about 7 months developmentally, but he has improved through physical therapy for his motor development. In his most recent well baby check-up, he was assessed to be 10-16 months developmentally (16 months in gross motor skills, 14 months in fine motor and personal-social skills and 10 months in language skills).
Seth needs a family that is open to his developmental unknowns and that has access to excellent medical resources. But most of all, he needs a family that is ready to love him and give him the care and attention that he needs!
One of the greatest misconceptions about adoption is that everyone who adopts has thousands of dollars lying around just waiting for somewhere to spend it. Not True! In fact, most families don’t start the adoption process with the full amount they will need to bring a child home. But because of their desire to grow their family through adoption, they use the many resources out there and find creative ways to fund their adoption.
From the North American Council on Adoptable Children:
Members of Congress who are working on tax reform indicated that for a provision of the tax code to remain in place it should do one or all of the following three things: (1) grow the economy, (2) make the tax code fairer, and (3) effectively promote an important policy objective. A refundable adoption tax credit does all three things. Today, we’re asking you to contact the tax staff of your members of Congress.
Highlighted FAQ How does the adoption tax credit benefit meet the stated goals of tax reform?
From the North American Council on Adoptable Children:
We need your help! The Adoption Tax Credit Working Group (ATCWG) has set a goal of obtaining 30 co-sponsors on the Adoption Tax Credit Refundability Bills — S. 1056 and H.R. 2144 in 100 days.
Why the urgency? Tax discussions are underway in the House and Senate and we need to keep the adoption tax credit top-of-mind with legislators and staff. The best way to do that is to demonstrate to legislators that their constituents care about this issue. In addition, because refundability was not included in the bill that made the credit permanent, many adoptive families are still not able to receive this critical support, a fact which some Members of Congress may not yet be aware.
This week, we ask you to get educated on the adoption tax credit by visiting the Save The Adoption Tax Credit website, reading their FAQ section, and liking them on Facebook for frequent updates. Please also read the particular FAQ below.
Please also spread the word with your friends, colleagues and family who would want to join in the fight to protect the adoption tax credit. The more people who understand about the need to reform the adoption tax credit, the better our advocacy outcomes will be.
Since its inception, the federal adoption tax credit has played an important role in helping children find forever homes by offsetting some of the costs associated with adoption. This credit not only benefits individuals who adopt domestically, but internationally as well.
Take Action: Lend Your Voice to the Tax Day Advocacy Campaign!
Happy Tax Day!
Today (April 15th) and throughout the week, join Holt and Voice for Adoption in sending messages to legislators — thanking them for making the adoption tax credit permanent, and also urging them to reinstate the refundable provision of the adoption tax credit.
Here’s the message we need to communicate: Nationally, nearly half (46%) of families adopting from foster care are at or below 200% of the poverty level, meaning many do not have a tax liability and cannot use a non-refundable tax credit.
Whether families adopt domestically or internationally, the refundable provision of the adoption tax credit is not a minor issue. It makes an enormous difference in the number of families who are able to claim it! When more families can claim this vital credit, more families can afford to adopt — enabling more children to join loving homes. It’s as simple as that! We need your help to let Congress know they can help more children join loving families of their own. We ask that you join us in urging Congress to reinstate the refundable provision — as it was in both 2010 and 2011 — so that all adoptive families can benefit from the adoption tax credit.
For legislator contact information and a sample letter template, click here.
Together, we made it permanent. Now let’s make it refundable!
UPDATE FROM THE VOICE FOR ADOPTION:Please note that since VFA’s original notice on the status of the credit (this January) we have learned that for 2013 the amount will be a maximum of $12,970. We also believe the credit does not have a carry forward limitation, like in prior years (previously restricted to 5 years forward). We are unsure if 2012 is limited to 5 years of credit carry forward and won’t know this information until IRS releases clarification later this year.
Last night, Congress passed the American Taxpayer Relief Act of 2012 (H.R. 8). The bill included a “permanent” extension of the adoption tax credit, unfortunately without refundability. The credit was permanently extended along with a number of other tax provisions from the 2001 EGTRRA bill (Economic Growth and Tax Relief Reconciliation Act of 2001). The bill made the adoption tax credit permanent, extending the credit as it was in 2001. However, the credit will not be refundable.
Here is a summary from the Finance Committee:
Permanently extend the increased adoption tax credit and the adoption assistance programs exclusion. Taxpayers that adopt children can receive a tax credit for qualified adoption expenses. A taxpayer may also exclude from income adoption expenses paid by an employer. The EGTRRA increased the credit from $5,000 to $10,000, and provided a $10,000 income exclusion for employer-assistance programs. The Patient Protection and Affordable Care Act of 2010 extended these benefits to 2011 and made the credit refundable. The bill extends for taxable years beginning after December 31, 2012, the increased adoption credit amount and the exclusion for employer-assistance programs as enacted in EGTRRA.
This is a major victory for adoption, and thanks to everyone who worked to make this happen! Again, grateful thanks to those whose efforts brought this to a successful conclusion on behalf of children needing families. Happy New Year!
Holt International is proud to announce that Senator Ron Wyden (D-OR) became a cosponsor of the Making Adoption Affordable Act (S. 3616/H.R. 4373), which prevents the adoption tax credit from expiring on December 31.
The legislation, originally introduced by Senator Mary Landrieu (D-LA), supports thousands of families who want to adopt, allowing them to provide children with loving, permanent families. The Making Adoption Affordable Act would set the tax credit at $13,360 and make it refundable and permanent. Making the tax credit refundable has made adoption a more viable opportunity, especially for those families with low to moderate incomes.
Holt is very appreciative of Senator Wyden’s support and will continue to advocate for the legislation. If you would like to voice your support, please contact your Member of Congress and encourage them to vote for this important legislation. For more details and information on how you can personally advocate for the adoption tax credit, you may visit: http://adoptiontaxcredit.org/advocate/.
The deadline is approaching… Act now to save the Adoption Tax Credit before December 31, 2012!
The outcome will directlyaffect Holt families. It will also affect children waiting for a family. If this act does not pass, they may not have one.
Right now, Members of Congress are in D.C. addressing tax and budget issues that need to be resolved before the end of the year. One critical issue under consideration is whether to extend the adoption tax credit!
As many of you know, the adoption tax credit is often a major factor in a family’s ability to adopt. Without this financial resource, many families simply can’t afford to! At Holt, we know some families are waiting for the outcome of this vote before deciding whether to go through with their adoption. That means children are waiting too – waiting to see whether they will be able to join a loving, stable home of their own.
And it all rests on whether our government reauthorizes – and makes refundable* – the adoption tax credit!
To ensure this act passes, Congress must hear from you!
2. Ask to be connected to the legislator’s office. Then ask to speak to the legislative assistant that handles adoption or tax issues.
3. Ask all three of your federal legislators to become a cosponsor of the Making Adoptions Affordable Act, S. 3616/H.R. 4373.
Hi, I am a constituent and I would like the Senator to cosponsor the Making Adoptions Affordable Act – S. 3616 (or Representative to cosponsor H.R. 4373).
The adoption tax credit ensures that vulnerable children find loving homes and do not languish in orphanages or foster care.
*The refundable provision is particularly important, because otherwise families with lower or moderate incomes — families who don’t owe taxes — won’t benefit. In some cases, that means families won’t be able to adopt at all.
Research has found that each adoption from foster care saves up to $235,000 in total public costs over the child’s lifetime.
Will the Senator/Representative cosponsor H.R.4373/S.3616?