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- Make Credit Refundable
- The Times - Tribune; Scranton, Pa. [Scranton, Pa]28 May 2013.
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- According to the IRS, of filers claiming the adoption tax credit in 2011, 62 percent benefitted from the refundability provision and 25 percent of all filers claiming the credit had adjusted gross incomes lower than $50,000. Clearly, refundability is an important incentive for families to adopt children.
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- The reality of adoption in America and its perception in the pop culture are widely divergent. Due to the publicity attending Russia's use of international adoptions for political purposes, and the attention that often attends adoptions by celebrities, the day-to-day issues often are obscured.
- Coverage of celebrity adoptions leads many Americans to view adoption as the province of the wealthy, but according to the U.S. Department of Health and Human Services, a third of all adopted children live in households with incomes less than 200 percent of the federal poverty level. Among households that adopt children from foster care, 46 percent are in that income range.
- For many families, then, adoption poses a huge financial challenge. To help them, Sens. Bob Casey and Mary Landrieu, and Rep. Bruce Braley of Iowa, have introduced the Adoption Tax Credit Refundability Act of 2013.
- A tax credit to encourage adoption was included in the American Taxpayer Relief Act, which was passed in January. Because a high percentage of adoptive families have low incomes, however, their tax burden is too low to make them eligible for the adoption tax credit.
- The new bill would make the credit refundable to the adoptive parents despite their low tax burden, as it was in 2010 and 2011.
- According to the IRS, of filers claiming the adoption tax credit in 2011, 62 percent benefitted from the refundability provision and 25 percent of all filers claiming the credit had adjusted gross incomes lower than $50,000. Clearly, refundability is an important incentive for families to adopt children.
- Making the tax credit refundable will create some cost for the federal government, but it long has been demonstrated that the cost of such credits is substantially less than the aggregate costs to the government of foster care.
- Congress, especially those members who claim a pro-life position, should vote for the credit to help make adoption as affordable as possible to as many prospective adoptive families as possible.
- Credit: Staff Report
- Word count: 329
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