Adoption Expenses: Where to Go for Help
Many parents wonder how to meet the cost of adoption. Make use of the credits, benefits, subsidies, and other resources listed below.
Adoption can cost $15,000 to $20,000 or even more, but credits, reimbursements, and other benefits can make your adoption affordable. Here are some of them:
Federal Adoption Expense Tax Credit For tax year 2003, the federal adoption expense tax credit increased to a maximum of $10,160 per adoption. See www.irs.gov/pub/irs-pdf/p968.pdf for details. Also, read the Adoptive Families article, "The Adoption Tax Credit," by Mark McDermott, at www.adoptivefamilies.com/clip.php.
State Tax Credits Several states have tax credits for adoptive families, sometimes restricted to those adopting from that state's public child welfare system. Contact your state adoption unit for more information.
Adoption Subsidies Children with special needs may qualify for a subsidy to help parents pay for ongoing treatments. For more information: North American Council on Adoptable Children, www.nacac.org/adoptionsubsidy.html.
Nonrecurring Adoption Expense Reimbursement Families who adopt from the public system may be eligible for reimbursement of adoption-related expenses, such as homestudy, travel, and attorney costs. More information:
www.nacac.org/subsidy_stateprofiles.html.
Military Subsidies Active-duty personnel are reimbursed for one-time adoption costs, whether adopting an infant, a waiting child, or a child from abroad. Find out more at naic.acf.hhs.gov/pubs/f_milita.cfm.
Employee Benefits More employers are offering adoption benefits for employees, and the dollar amounts of these benefits are growing, with the average expense reimbursement now approaching $4,000. Two resources for help in lobbying for these benefits: www.adoptionfriendlyworkplace.org and www.benefitsguides.com. Also read "How to Lobby Your Employer for Adoption Benefits" at
www.adoptivefamilies.com/clip.php.
Grants and Loans Some adoption agencies and organizations offer adoption grants and/or low-cost loans. Agencies with such programs include Holt International, World Association for Children and Parents (WACAP), and Dillon International. (See the adoption agency listings in this Guide for contact information.) The Gift of Adoption Fund: www.giftofadoption.org, and A Child Waits, www.giftofadoption.org (for Eastern European adopters) offer grants.
Other Resources Look into cash advances from credit cards, second mortgages, home equity loans, and special adoption loans. Consider borrowing from your life insurance policy, 401(k), or pension plan. Perhaps you can tap friends and relatives. Maybe you can take a second job until your child comes, or identify a birthmother who already has medical insurance. More ideas are found in the booklet, "How to Make Adoption an Affordable Option," available from the National Endowment for Financial Education at www.nefe.org/adoption, or by calling 888-878-3256 (item #508-F). Also see the Burke Family's list of adoption funding sources at: www.angelfire.com/journal/adoptionhelp/adopthelp.html.
Bottom line: Leave no stone unturned.
©2000-2005 Adoptive Families. All rights reserved. Reproduction in whole or in part without permission is prohibited. |
