National Adoption Month: Making Adoptions Affordable
November 12, 2009
“Life, Liberty & the Pursuit of Family” is a series of conversations and blog posts celebrating National Adoption Month. This post in the series comes from Alison Delpercio, HRC Family & Workplace Projects coordinator. Have you ever considered adoption? Do you know someone who has adopted? Then you probably have a sense that the adoption process involves many choices AND lots of planning. Cost is one of the key considerations when deciding what type of adoption is right for you. Adoption expenses range from $0 to over $40,000 depending on the type of adoption pursued. Check out this chart from the Child Welfare Information Gateway [pdf]:
| Adoption Costs | |
| Foster Care Adoptions | $0 - $2,500 |
| Licensed Private Agency Adoptions | $5,000 - $40,000+ |
| Independent Adoptions | $8,000 - $40,000+ |
| Facilitated/Unlicensed Adoptions | $5,000 - $40,000+ |
| International Adoptions | $7,000 - $30,000 |
A little overwhelmed by those figures? You’re not alone. Studies show that nearly 4 out of 10 Americans have considered adoption and 50 percent say adoption costs are a major concern. Of course you should consider the costs of parenting and be honest with yourself when you ask, “Can I afford to be a parent right now?” (The adoption agency or facilitator with whom you work will help in that determination as well.) If the answer is yes, then there are many resources out there to help individuals and couples defray the costs of adoption. If you plan ahead, you can greatly minimize the costs of adoption. You may be eligible for an adoption tax credit of up to $12,150 and your employer may also reimburse you for any additional costs. There are state subsidies available for certain adoptions that can help to defray costs substantially. You can also apply for grants or loans to help finance an adoption. Here’s an overview of a few of these options:
| Federal Tax Credit | |
| What is it? | The tax credit is an amount subtracted from your federal tax liability (the amount of taxes you have to pay) based on the adoption expenses you paid. Only certain qualified expenses are eligible for the tax credit such as adoption fees, attorney fees, court costs and travel expenses. |
| How does it work? | When filing your taxes, complete form 8839 and attach it to your form 1040 or 1040A. |
| Where can I learn more? | Check out the IRS page on the adoption tax credit, the resources listed below or consult an attorney. |
| Federal and State Subsidies/Reimbursements | |
| What is it? | Public funding defrays the costs of adoptions through the child welfare system. In addition, subsidies are available for “special needs” adoptions in order to help adoptive parents pay for their children’s ongoing needs such as therapy or treatment. Adoptive parents may also be able to receive reimbursements for certain “non-recurring” adoption expenses. |
| How does it work? | Subsidies and reimbursements are paid to adoptive parents after the finalization of the adoption. Adoption agencies provide families with information on this financial assistance and help you apply for the funds as well. |
| Where can I learn more? | Each state has its own guidelines for what children are considered “special needs” they include older children, those with disabilities and those who are part of a minority group. Child Welfare Information Gateway provides an overview of adoption assistance by state. |
| Employer Adoption Benefits | |
| What is it? | Many employers offer adoption benefit programs that include financial assistance and leave time for employees who adopt. |
| How does it work? | Financial assistance from an employer usually comes in the form of reimbursement of adoption costs. Reimbursements of certain qualified expenses can be done on a tax favorable basis (they won’t be considered taxable income). Leave time can be paid or unpaid and can be a huge help in making the adoption process possible as you may need to miss work for home studies or travelling as well as post-adoption time at home with your family. |
| Where can I learn more? | The Dave Thomas Foundation for Adoption has an Adoption-Friendly Workplace Program. Also, check out HRC Foundation’s new resource for employers, “Adoption Benefit Programs: LGBT Considerations for Employers.” |
Check out these additional resources:
