[dragonfly1234]

I realize that we are in the middle of a "huge presidential race" and we are all split as to what we should do for our election (and this not about political parties). The current candidates wish to repel all tax credits. Now with that said one of those tax credits is our current adoption tax credit which is currently $11,390.00.

I first want to say the tax credit could and likely will return to $5,000 credit a year but the worse case scenario it would go to $0 a year.

Now with that said I am torn.....I am so pro adoption and wish to see adoptions to continue...but to what cost....I think

What do you all think???!

[aclee]

When we met the first time, and she told us that she as giving us 9 months before she kept us in line for other AA or BR adoptions, I told her we wouldn't be able to afford it again, esp if the credit was reduced or went away. She said she had heard the rumblings too, and from everything she had read, she thought the candidates would have a very hard time including the adoption credit as part any plan to eliminate Tax Credits. It's not quite the same as Tax Credits for other things.

We can hope!

[KatiesEd-dad]

I usually stay out of politic and tax discussions IRL and online due to the fact that I believe the money I earn should be spent on me and my family instead of someone elses family.

I certainly do hope they don't eliminate the adoption tax credit. This is the only way we were able to afford our first adoption and are looking forward to paying off the debt from our 2nd adoption with the tax refund when #2 arrives. My wife and I make a decent income but we are by no means rolling in money. Our second adoption will run right around $12k so it's just about even steven.

If they do, we'll have to drop out of the pool for #2 as there will be no way to pay it off in the end. I do get tired of footing the bill for everyone else.

[kelceesmom]

It would be sad to see this disappear as many people, I believe, are able to afford most if not all of an adoption, knowing this credit will come and pay off the adoption expenses. I certainly hope that it does not disappear.

[mandirenee]

The Adoption Tax credit is scheduled to expire anyways December 31, 2010. Unless it is extended it will reduce back to the previous $5,000.

We are praying that our second adoption takes place this year and finalizes in 2009 so we can take advantage of the $11,000 tax credit. We also wouldn't be able to adopt without this credit.

[meghann]

We decided to pursue adoption in part because we heard about the tax credit - we really felt it was out of our league, financially, until we heard about this. That said, we would continue to try to adopt if the credit were repealed or not renewed (if we're still waiting by then!). Having to come up with the money up-front, we've realized that the credit would make it easier for us to pay back what we must borrow, but that we *could* pay it back without the credit.

It would probably affect our ability to adopt a second time, but who knows what our financial status will be by then - maybe we'll be in a position to better afford it.

Regarding "footing the bill for everyone else" - I don't have any desire to get into a debate about it, so suffice it to say that I see things differently than that. But I did want to point out that when I avail myself of this credit, others are "footing the bill" for me - and I'm very grateful that so many are willing to do that so that people like me can become parents.

[BrandyHagz]

Historically, the cost of adopting has gone up with each increase to the credit amount. I would image, if the credit were removed (or reduced) that agencies would have to respond - because they could no longer use that as marketing tool to attract couples/families hoping to adopt.

At any rate - I don't feel the answer to the cost of adoption is the Tax Credit - I feel the answer is federal laws that cap/address the insane fees some agencies charge for their services. This makes adopting reachable for far more people that, even with the tax credit 'promise', can't afford the tens of thousands of dollars it costs to complete an adoption.

There is an agency in Nebraska that only works with Nebraska families and they charge absolutely nothing. So, if they can do it, why can’t others? Many/most agencies have the “charitable organization” designation – the same as the Nebraska agency I am speaking about – so what is the difference?

These are the questions I am more interested in having answered.

The adoption tax credit has very little impact on my political decisions – although I do admit to being curious about the position of the candidates and federally mandated adoption laws/oversight…but haven’t gotten a reply from any of the letters I’ve sent.

[Fran27]

Amen Brandy!!!

The tax credit we will get for the twins is going to be really useful, but I'm not even sure that we'll get the full amount back after 5 years - and that's only of course if we can even use it for 5 years if they stop giving it in two.

What I mean is that when you don't earn much and don't pay much in terms of taxes, especially when you add a kid in the mix, you won't always get the full amount of the credit anyway. So it really doesn't help low income families, which is a bit ironic as they are the ones who could use the help the most in the first place.

There should be a better way of making adoption affordable.

[mandirenee]

Brandy - 100% agree!

[buttascotchbaby]

Originally Posted by mandirenee

Brandy - 100% agree!

Me too! Me too! I agree!! Whenever I speak to agencies or facilitators and they bring up the tax credit I am always "yeaahhh, thanks" It doesn't help me much, I am a single mom with a home based business, which means I write off pretty much everything, so the credit does me no good

I keep thinking maybe I can get a high paying job or get married in the next year since my adoption for two of my kids will be (Please God!!) finalized in September! LOL

[dragonfly1234]

Brandy that is so why I am torn! I liked the tax credit for our first adoption but that was 4 years ago. However as the tax credit increased the adoption agencies increased their fees. That made it so that we could no longer adopt again.

I so agree that this needs to become a federal cap to all fees. But does any one have an answer to fix this problem?

[loveajax]

The tax credit phases out at certain income so it is geared toward helping "lower" and "middle' income families adopt. I think our tax policy "encourages" and "discourages" all sorts of things that are viewed by society as "good" or "bad." Do I think helping people adopt is a good thing? Definitely. Do I think it has resulted in correspondingly higher fees? Definitely. It's a tough one, but selfishly I think I personally can do "better" with the fees that I will likely pay for our second adoption in combo with the credit so I hope it doesn't disappear. (Vote your pocketbook, right?).

ETA: I just remembered a different tax break that is outrageous (and yet I used)....if you buy a car that is over 6000 lbs and you are self employed, you can write off 25K of it in the first year (as opposed to the normal depreciation). Can you say, the worst tax policy for the environment? (I know, I am a hypocrite!).

[dragonfly1234]

Loveajax,

The tax credit phases out at certain income so it is geared toward helping "lower" and "middle' income families adopt. I think our tax policy "encourages" and "discourages" all sorts of things that are viewed by society as "good" or "bad."

]

Just curious what you consider "lower" and "middle" income families?

Who qualifies for the tax credit?
In 2008 persons with modified adjusted gross incomes of $174,730 or less, phasing out for modified adjusted gross incomes up to $214,730

I guess my idea of "lower" and "middle" income families is different from your definition.

Adoption has become less afordable for the average person (I like to think of my family that is very much the average person who tries to come up with the money to adopt) not those people who are quoted above because I am not even close to that. Tell me how the "lower" income families can even think about adopting?

[feelingreyt]

Originally Posted by meghann

Regarding "footing the bill for everyone else" - I don't have any desire to get into a debate about it, so suffice it to say that I see things differently than that. But I did want to point out that when I avail myself of this credit, others are "footing the bill" for me - and I'm very grateful that so many are willing to do that so that people like me can become parents.

Not wanting to debate at all here, but the only person footing the bill for your adoption, is you. The adoption credit is just that, a credit. The only way it is refunable is if you, the taxpayer, has paid in more tax than what your tax liability is. If it makes your tax liability Zero out, for example, you will only get refunded to you the amount you paid in Federal Tax that was withheld from your wages. That is why the credit can carry over for 5 yrs.

[dragonfly1234]

Not wanting to debate at all here, but the only person footing the bill for your adoption, is you. The adoption credit is just that, a credit. The only way it is refunable is if you, the taxpayer, has paid in more tax than what your tax liability is. If it makes your tax liability Zero out, for example, you will only get refunded to you the amount you paid in Federal Tax that was withheld from your wages. That is why the credit can carry over for 5 yrs.

Isn't great to have that tax credit? We got to use it over 4 years and dh was thrilled that we did not pay taxes for those 4 years.

But again my question is that we may not have this tax credit once we have a new president as of January. But again can we change the agencies to reduce the fees to go with the reduction on the tax credit? Unless we see a change in our congress and senate to change the tax law to make sure it stays?

What is the best intrest for the future of adoption