Tax Reform Hurts Family Building
Dear [Decision Maker],
I am your constituent and I am concerned that the "Tax Cuts and Jobs Act" will impact people who are trying to build their family. The bill includes three provisions that if eliminated, would make family-building much harder for middle-income Americans. In the proposed bill, the Adoption Tax Credit will be eliminated. Since 1997, this bi-partisan tax credit has helped thousands of children find their forever family, and has helped build families. Eliminating this pro-family credit will have a chilling effect on adoptions and make it harder for Americans to adopt.The bill eliminates an income tax exclusion, which allows people to exclude as income benefits they receive from their employer to help with their adoption. Many companies today provide an adoption assistance benefit, which may range from $5,000-$20,000, to help their employees cover the cost of adopting a child. If passed, the bill would eliminate this exclusion and the adoption assistance benefit would be viewed as income and be taxed. This is an employer-provided benefit, just like health insurance or time off, and should not be taxed as income.Lastly, the bill eliminates the medical deduction. Americans who are trying to build their family can often incur large medical bills as most infertility medical treatments are not covered by health insurance and only a handful of states require insurance coverage. As a result, most patients must pay out of pocket for infertility medical treatments, often incurring expenses of $15,000-$30,000. The medical deduction is one area of relief for these couples.