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Refundable Adoption Tax Credit: Support for Adopting Families.

This act changes the adoption tax credit rules, making it refundable. This means that families adopting children can receive money back, even if they don't have enough income to deduct the full credit. This will make adoption more accessible and reduce financial burdens for many families.
Key points
The adoption tax credit becomes refundable, meaning families can receive money even if they don't pay enough taxes to claim the full credit.
The changes apply to tax years beginning after December 31, 2020, making benefits potentially available for recent adoptions.
Standardized third-party affidavits are introduced to simplify the verification of legal adoptions, including those involving children with special needs.
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Additional Information
Adoption Tax Credit Refundability Act of 2021
Print number: S 1156
Sponsor: Sen. Casey, Robert P., Jr. [D-PA]
Process start date: 2021-04-15