Adoptive parents urge Congress to reinstate tax credit

INDIANAPOLIS (WISH) - Adopting a child is a long and expensive process, but to help offset the costs the federal government offers parents a tax credit.

However the credit is running out at the end of the year and adoptive parents are urging the government to keep the credit around.

3-year-old Liam is full of life and his family adores him, but for his parents who want to remain anonymous, battled infertility and their path to parenthood hasn’t been an easy one. “It got to the point where it could be a cross roads we could either do in vitro fertilization or we could consider adoption,” explains Liam’s Dad Bobby.

Liam’s adoption cost nearly $20,000 and to help offset that amount his parents claimed the federal tax credit, which for them was just over $12,000. “The cost of just a new baby is like thousands of dollars and daycare and all that. There's a lot of adoption costs we had to pay in addition to that,” says Liam’s Mom Maren.

Even with financial help claiming the tax credit is not an easy task. In 2010 almost 70% of taxpayers claiming the credit were asked by the IRS for more information. For Bobby and Maren that process meant waiting almost 4 months for their refund. Also the amount varies every tax year. Just take a look at the last 3 years. 2012 parents can claim $12,650, 2011 that amount was $13,360 and then in 2010 it was $13,170.

On top of that Bobby and Maren say what the IRS requires from parents is never the same. “If it’s consistent then people know what to expect and the rules won't be changing,” explains Maren.

For Bobby and Maren expanding their family is something they hope to do, but what happens in DC will play a role in their decision. “Maren and I have talked about adopting again to be quite honest we might have to look at different routes if there's not a credit available, just knowing what it takes to go through the adoption,” says Bobby.

If the tax credit is not reinstated, there is a smaller tax credit of $6,000 that will stay in place, but it can only be used for domestic adoptions of children with special needs.