A new adoption tax credit may help couples in the United States adopt a child who might not have had the financial means in the past, said Sheldon Smith, an associate professor of accounting at Utah Valley State College.
Speaking at the LDS Family Services 2002 National Family's Supporting Adoption Conference July 27, Brother Smith said the federal policy objective not only shows a national support for adoption but also is helping children get into loving families.
In general, he said, the adoption tax credit was expanded in 2001 to a $10,000 credit per adoption effort, "meaning it is something you can deduct directly from your tax liability."
"If you have a $10,000 tax liability for the year, and you've paid $10,000 in adoption expenses, you could technically reduce your tax liability to zero for that year and, in essence, get all of that money back," said Brother Smith.
This may help families who could not afford to adopt in the past, he said.
"Some people may have gone out and borrowed the money to adopt, and now maybe they won't have to borrow money or borrow as much money, so it may increase their ability to adopt or the choices of adoption efforts that they may pursue."
In the long run, Brother Smith said, the tax credit will really help children and society.
For more information about the National Family's Supporting Adoption Conference or LDS Family Services, please call 801-240-1711 or e-mail [email protected].