You’ve decided to adopt a child, and you estimate it’s going to cost $25,000. You earn $56,000 per year. How are you going to come up with that much cash?!
Adoption professionals—many of whom are adoptive parents themselves—realize that adopting is a financial hardship for many parents. Agencies often offer some form of financial assistance or are willing to reduce their fees.
When you’re interviewing prospective adoption service providers, ask them the following questions:
- Do you offer sliding-scale fees based on my family income?
- Do you offer interest-free adoption loans or subsidies if I adopt a child with special needs?
- Do you partner with a financial institution to offer a low-interest line of credit?
- Do you offer adoption grants?
- Do you offer any other kind of financial assistance?
Workplace Benefits
In addition to obtaining financial aid from your adoption service provider, you can take advantage of workplace benefits. A growing number of employers offer adoption assistance, ranging from full- or partially-paid adoption leave to financial aid packages that cover legal fees, agency and placement fees, and even birth mother medical costs.
Tax Credit
If you have a modified adjusted gross income of $210,820 or less, you may be eligible to receive a federal adoption tax credit of up to $11,390 for qualified adoption expenses. This credit is not available in a step-parent adoption, but may be available if you are adopting the child of a domestic partner. The tax credit is not a deduction, but rather, a true credit that reduces the amount of tax you owe, dollar for dollar. Read, "The Federal Adoption Tax Credit Explained" for more details. As you might expect, the tax credit law contains permutations that would take pages to explain, so check with the IRS or your tax advisor for complete information.
Subsidies
If you plan to adopt a child with special needs, you may be able to take advantage of federally- and state-funded adoption subsidies. Keep in mind that you must apply for these subsidies before your child’s adoption is finalized.
Grants
Adoption foundations award grants to parents who are already deep into the adoption process and have exhausted other means of obtaining financial assistance. Grants, which range from several hundred to several thousand dollars, are intended to help families over the last financial hurdle. More articles about foundations who award grants will be posted throughout April.
Faith Communities
Many houses of worship have “adoption ministries,” “orphan ministries,” or “waiting child ministries.” They provide grants and discretionary funds to assist parents with adoption fees. In some cases, adoptive parents do not need to be members in order to apply for assistance.
Patience and persistence are the keys to obtaining financial assistance for adoption. Think outside the box, and don’t be afraid to ask for help.
This article is adapted from my book, The Adoption Decision: 15 Things You Want to Know Before Adopting
In the next post: Temporary Tightwad Tactics to Offset Adoption Fees
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