What’s happening with the adoption credit? Here’s an overview:
- For 2010 and 2011, the credit was fully refundable. For 2012, the credit is no longer fully refundable, and the maximum credit decreases from $13,360 in 2011 to $12,650 in 2012.
- If no further legislation happens, the adoption credit will drop to $5,000 (or $6,000 for a special-needs child) in 2013.
President Obama proposed, in his 2013 budget, to keep the expanded and refundable version of the adoption credit. Also, Iowa Congressman Bruce Braley has introduced legislation that proposes keeping the expanded and refundable version of the credit.