On March 23, 2010 the Adoption Tax Credit was amended as a part of the Healthcare Bill.  The credit was increased to $13,170 for 2010, was extended through 2011 and made refundable.  These changes were made retrocactive to January 1, 2010.   Unlike past years where you had to carry the credit forward for up to five years if you were unable to use it all in one tax year, now if the amount of adoption related expenses that you claim reduces your federal tax obligation to to zero, you are entitled to a refund for the amount of any credit remaining.  If you are adopting a special needs child, you are entitled to claim the full amount of the credit, even if you have no adoption related expenses.  All adoptive parents who finalize their adoption in 2010 are urged to meet with a knowledgable tax professional to ensure that they receive all of the benefits of this new adoption tax credit.

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