Adopting a Child

A - One of the non-health care-related items included in the new health care legislation was an increase in the dollar limitation for the adoption credit from $12,170 to $13,170 for 2010 and to adjust the amount for inflation in future years. But more significantly, the credit is now refundable, where before it could only be used to offset a tax liability with any excess lost. This will significantly help families with a small tax liability who would like to adopt a child.