[Matt&Jen]

I haven't seen this discussed here so sorry if it has...

House Bill HR1561 aka the Childhood adoption act would raise the adopton tax credit from $10,000 to $15,000. It was introduced in April and is currently in the ways and means committee. We need to let our representatives know it needs to be supported.

Here are the links to a draft of the bill and to the house of representatives so you can write to them. I hope they work.

Matt

www.house.gov

http://www.childadvocacy.com/legislation/archives/002128.php

[Matt&Jen]

Sorry

Chidhood Adoption Act 2005


Representatives

[foxl]

"(b) Credit Made Refundable- "

Does anyone know how to interpret THAT?

thx,
Linda

[Mailbox13]

A refundable tax credit allows you to get back more than you owe. For example, lets say the amount you had withheld from your paycheck was exactly what you owed before the credit. In other words, if you didn't get the credit, you would get neither a refund or have to pay when you file your return. Here are some numbers below. I also assumed married filing jointly.

Taxable Income (Line 42 on 1040) 80,000
Tax Liability Line 43 (1040 tax charts) 13,481
Paycheck withholdings (Line 63) 13,481
Normal Refund without credit 0
Refundable Credit 15,000
Refund with credit 15,000

In this scenario you actually get more back than you owe or have paid in. Normally, the extra credit (1,519) would have to be carried over and applied on the next tax return.

Currently, the only refundable tax credit that I know of is the earned income credit. Your income has to be very low to qualify for this. Refundable credits are usually geared toward people with very low incomes.

I hope my example makes sense. Sometimes people get confused between what they had withheld, what their tax liability is, and what they get refunded.

[hope4girl]

I just sent my email off. Thanks for posting this very much needed information.

[Sheba]

Well thank you for the information. I just emailed our represenative to support this measure.


Julie
lid 2/23/05 Kennedy

[orbit03]

Some friends and I are meeting with my representative this week, I'll be sure to note this house bill number and hopefully we can get his vote too.

EDIT: I just checked the status of the bill. It is currently in committee (House Ways and Means) and my representative happens to be on that committee. I'll post with what I learn.

[BrandyHagz]

Just wanted to post, incase no one here has given it much thought.

The idea of the Tax Credit being raised is great…any help to cover the growing cost of adoption is certainly welcome…but I wanted to offer a little info on what happened the last few times the Tax Credit was increased…the cost of adoption increased as well.

When this discussion was taking place on the Guatemalan forum a month or so ago, members were already reporting a proposed increase in fees by their agencies…others, who adopted in the years prior to the Tax Credit, reported that fee’s increased dramatically, and many agencies gave the reason as, “You’ll get the money back from the Tax Credit” rather than an increase in costs for the agencies to run their business.

It’s always a good idea to look at both sides of the coin…so I thought I’d share the other side with you, so you could make a better informed decision regarding this proposed increase.

The Tax Credit wont mean much, if agencies are raising their fees across the board by $5000.

[foxl]

Actually it WILL mean much ... to the agencies!

I would like to know who lobbied to get the bill written ... ?

[Matt&Jen]

Good point

[sickmeig]

will it only apply to adoptions finalized after 12/31/05?
what about those finalized in 2004?
thanks