Last weekend it was time to do the nitty gritty research on how we're going to fund this adoption. Since the beginning, we have read over and over about the adoption tax credit. In 2009, it was up to $12,000 per child. So we haven't been super worried about the finances since we knew we'd get it back in our refund. All we'd have to do was float the payments until the adoption was finalized and we received our refund. Easy? ....not quite.
Apparently, the tax credit only reduces your tax liability. It is "non refundable". Well that's all fine and dandy for people that have a high tax bill, but we don't! So basically, we have been misinformed.
Again, out came the ugly monster that lives inside me to torture me with doubt and distrust. I was really feeling like the whole idea of adoption was off the table. There is NO WAY we could afford this without the tax credit. I was near tears all day Monday. (Jeez, I hate that I'm so emotional!)
Thankfully, after talking to a few close friends and Brent, I was feeling a lot better about things. I called a tax guy that was willing to look into the situation and research for us. On Tuesday afternoon he called back and said that things looked a little brighter. We won't get the full tax credit, but since the credit is applied before the child tax credit, our tax liability is higher, letting us get more of the adoption credit. (I don't get it all, I'm just explaining in my simple understanding!) So in the end, things look better, although it will not even be halfway paid for by the credit.
So, we now have an opportunity to watch God show off! Right? It is scary to take this step of faith not knowing where the extra money is going to come from. BUT, months ago I asked God to teach me how to live by faith. Now that He's giving us the opportunity, I'm not feeling as confident. But, I will choose to trust Him, even when it doesn't make sense. We're doing lots of praying this week, for sure!