If you are considering adopting a child this year, you’ll be happy to hear the latest update on the adoption tax credit. The adoption tax credit has been extended for one more year, has increased, and you may even qualify for a refund!
The new tax credit provides not only a credit but a refund if you do not receive the $13,170 in tax credit. So instead of waiting perhaps up to five years to get your full tax credit, you can receive the credit as a refund if you do not pay $13,170 in taxes.
If you are considering adopting a child from China, for example, the fees and your expenses could work out to be about $23,000. When you deduct for the tax credit, which may also be a refund, you could really be paying about $9,830 in net costs. If you or your spouse’s company has employer-provided adoption benefits, which on average, tend to be about $5,000, you could end up having a net expense of about $4,830. Continue reading
Employers step up with benefits as adoption becomes more difficult
September 2, 2007
BY SUE SCHELLENBARGER The Wall Street Journal
Adopting a child from overseas has never been easy. But new restrictions on overseas adoptions have made the process much tougher, causing added stress and job disruptions for would-be parents.
The changes are demanding more patience on the part of adoptive parents, better planning and communication at work with bosses and coworkers, and more flexibility on the part of employers. Fortunately for some, the shift coincides with a sharp increase in adoption benefits by some employers, including paid leave and reimbursement for costs.
Flexibility at work has always been essential for adoptive parents. In anticipation of a Chinese adoption in 2004, Jean Walker, a marketing manager, shifted to a new job with her employer, Verizon Communications in New York, that required less travel. She laid plans with her boss for a substitute to cover her three-month adoption leave.
Then, she waited — for the call that a child was ready for her in a Chinese orphanage. It came within weeks, triggering a new flurry of paperwork, planning and leave-taking, Walker says. That adoption took about a year.
But now, many of the most popular countries for U.S. adoptions, such as China, Russia, Ukraine and South Korea, are tightening restrictions or extending the waiting or processing periods. Continue reading