The credit essentially helps subsidize costs — sometimes in the tens of thousands for private or international adoptions — for agency and attorney fees, travel, and post-adoption services, such as retrofitting a home for a child with special needs. As things now stand, though, this Republican Congress may well end up funding Planned Parenthood while abolishing the adoption tax credit. In December, House Ways and Means Chair Kevin Brady (R-TX), one of the architects of the tax overhaul bill who is also a father to adopted kids, spoke at the Heritage Foundation about tax reform, and he mentioned the adoption tax credit as an example of a provision that could be eliminated. “We are deeply concerned by the elimination of the adoption tax credit within the House Republicans’ tax reform proposal,” the Adoption Tax Credit Working Group said in a statement. But if I had to choose between an Obama-administration audit and the abolition of the tax credit, I’d take the audit every time. “Tax Bill is strong but needs to include adoption tax credit. The tax credit Clinton signed offered up to a $5,000 credit to families, or $6,000 for those who adopted a child with special needs. In 2017, adoptive households were eligible for a maximum credit of $13,570. That’s because the credit is currently nonrefundable, which means if adoptive parents don’t earn enough to owe federal taxes, they aren’t eligible. Now these groups are battling to save it. It needs changes, and one of the first changes it needs is easy, inexpensive, and pro-life. “It’s not only they’re less likely to be adopted,” Hansen said of getting rid of the credit, “it’s that if they are adopted, they’re less likely to get the services they need if parents don’t have the adoption-year financial support. To meet an adoptive family is to meet a family with a story — one that often involves prevailing in the face of adversity and almost always involves financial strains that few other families understand. The same goes for families who adopt from foster care: According to a 2011 study from the Department of Health and Human Services, about half of those adopting kids from foster care are low-income families — which means they might not be able to take full advantage of the adoption credit in its current form. A refundable credit would also help families adopt more than one child at once, keeping siblings together and the family unit intact. Rep. Brady told the Washington Post that the adoption tax credit in its current form wasn’t working because families didn’t earn enough to qualify, or didn’t itemize, and that the new plan would give “families more in their paychecks.” The GOP tax overhaul does outline a modest increase to the child tax credit, which would benefit adoptive parents — but only after the fact. There is much to like about the Republican tax plan. Religious groups, as well as House and Senate conservatives, say that by eliminating the credit, the proposal goes against the GOP’s “pro-life” platform. There is, however, one thing that helps these families, and it helps a lot: It’s called the adoption tax credit, a $13,570 non-refundable credit that phases out for truly high-income families. “There are tough choices, when you look at medical expenses, student loan, the adoption tax credit, something near and dear to me,” said Brady, who is the father of two adopted children.
– The tax overhaul in the works has drawn controversy over possible changes to 401(k) plans and deductions for homeowners, but another, lower-profile topic has emerged as a sore point. The House plan unveiled last week would eliminate a one-time tax break for families that adopt children. The break can be a substantial one—it's $13,570 in 2017, which can take the sting out of adoption costs that can approach $40,000 if done through an agency, per the Hill. The issue has become a flash point on the right because conservatives equate the credit with supporting pro-life, pro-family values. "Being pro-life means being pro-adoption," tweeted GOP Sen. Ben Sasse. "Congress must remember this as we work through the details of tax reform." Now the Washington Post highlights a different wrinkle: The House's top tax writer has two adopted sons. Rep. Kevin Brady, chair of the House Ways and Means panel, has called his adoptive kids the "biggest blessing," but he defends the credit's elimination. It's "not working," he tells the Post, saying that some families can't claim it because they don't pay enough in taxes or don't itemize. A piece at Vox notes that the credit is indeed "nonrefundable," meaning that parents who don't make enough to owe federal taxes aren't eligible. Those in the middle or upper-middle class, making between $100,000 and $200,000, claim the credit the most. Brady argues that tax overhaul will help all families in a more general sense by, say, increasing the child tax credit. Still, expect the issue to remain contentious. Congress "may end up funding Planned Parenthood while abolishing the adoption tax credit," writes David French in the conservative National Review. "That’s intolerable."