Adoption provides a home and a family for a child in need and for parents with love to give. Many people choose adoption as a source for building a family. There are many more who would like to pursue adoption, but who feel unable to complete the process due to financial costs. The expenses associated with adoption can be discouraging, but financial help is available for many situations to complete an adoption.
Cost
The total cost of an adoption can vary, depending on the type of process chosen. Domestic adoptions, particularly those following a foster care situation, can be less expensive than some private adoptions through an agency. At a minimum, families must pay the expenses of a home study. Agencies and facilitators may vary in how much they charge for processing paperwork and working with parents. International adoptions may also result in extra costs associated with intercountry travel: visas, travel documents and international airfare. Because of the variety of adoptions, expenses can run from very little cost to over $40,000.
Adoption Tax Credit
The adoption tax credit provides a return for some of the money paid into adoption expenses. Adoptive parents can claim the expenses of their adoption the following year after a child joins their family. The money is subtracted from a couple’s tax liability and is received back through a tax return. According to the Internal Revenue Service, in 2009, the maximum amount allotted for the credit was $12,150. Some limitations may apply, such as the amount of a family’s income and considerations for qualifying adoption expenses.
Grants
Adoption grants are available through various organizations that want to help prospective parents adopt. Grants award money to qualified applicants, and the amount presented may vary. Grants are money that does not have to be paid back. The giving organization may have its own requirements for prospective families, and some parents may need to demonstrate financial need. Grants can help pay for part or most of the expenses associated with an adoption.
Loans
Taking a loan may be another way of financing an adoption. Parents may consider a home equity loan if they have a financial investment in a house. Some organizations offer low-interest or interest-free loans for a specified period to help parents cover financial obligations up front. A line of credit may also be established with a bank or credit union that allows parents to use funds as they proceed through the adoption.
Other Options
Other benefits may be considered to cover costs, depending on the background of adoptive parents. Some employers offer a contribution for a certain amount that is designated solely for adoption expenses. Families with an active member of the military may qualify for $2,000 in reimbursement per child for adoption expenses. Some states also have adoption credits available for children adopted from a foster home or those with special needs.
References
- Adoption: The Costs of Adoption: A Factsheet for Families
- IRS: Adoption Benefits Increased
- Gift of Adoption: Apply for a Grant
- Adoption Support Center: Financing
- "Successful Adoption: A Guide for Christian Families"; Natalie Nichols Gillespie; 2006
