For those of you who might not be aware, there has been a federal tax credit in place for a number of years that refunds taxes PAID to adoptive families up to a certain amount. That amount has gone up over the years. The adoption tax credit was set to expire at the end of 2010. We were quite upset about this because as our adoption of Levi drags out, it is less and less likely that we will be able to finalize his adoption in 2010. It takes about six months for that to happen.
I just received some news today by email from Rainbow Kids. It turns out there was something good included in the health care bill for adoptive families:
With the signing of the new health care bill, adoptive parents received some very welcome news. Not only will the adoption tax credit be extended until December 2011, but it has also been increased from $12,170 to $13,170 for adoptions occurring after January 2010. And for the first time, the credit will now be refundable. Families may receive a refund for documented expenses for the adoption of their child.
I am just extremely thankful for this! Not only are they extending it, but it is now not a tax credit – only refunded on taxes paid – but it is an actual REFUND. That is even better! With the girls adoption expenses, it will take us years to get the amount back that we can from the tax credit.
So, I am just praising and thanking the Lord for this news as we continue to wait and see what the court in India is going to do with our case.