Tax Credit News

There are some things going on with our adoption that I should probably tell you- we finally got CIS approval, which is sort of a big deal, but that’s all pretty boring so I’ll tell you about it later.  Today I want to share some news I found out.

We get weekly emails from our agency that tells us if there have been any referrals, if any families are travelling, news about Ethiopia, etc.  We get them late in the day on Fridays and I really look forward to them.  I open them and can’t read them quickly enough.

Today my eyes fell on this sentence and my heart did a cartwheel.  I think I might have even screamed a bit.

The adoption tax credit has been extended through December 31, 2012.

This is what we had been praying for!!  This eases our financial worries by a landslide!

BUT.  Then my eyes fell on this sentence:

The refundability expires on December 31, 2011 and will not be available for 2012.

I’m not an accountant and have a lot of questions about what that means, but some common sense and some Google research tells me that a refundable tax credit can reduce your tax credit below zero.  If your credit is more than your liability, you get a check. A non-refundable credit can reduce your liability to zero, but cannot issue a refund.

THIS IS MAJORLY SUCKY.

The tax credit is currently $13,000 something per child.

That’s roughly $26,000 we thought we’d get refunded.

That’s $26,000 something we had hoped to get back, planned to get back even, but will not be getting paid back.

Did I mention this is MAJORLY SUCKY?

I just found this out about 10 minutes ago, so maybe there is something I’m missing.  Maybe things like this change all the time.  Maybe it’s time to have some more garage sales.  Maybe I’m overreacting and I should hold off posting this until I have more information.  But adoption can be a roller coaster and I want you along for the dips as well as the peaks.

 

 

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1 Comment

Filed under Adoption Finances

One response to “Tax Credit News

  1. Megan

    That so stinks!!! More prayers headed your way for some other windfall that can help!

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