Tight on cash? That should not prevent you from adopting. There are many resources out there that can help you expand your family through adoption. We work with families of every income level. We find that most adoptive parents are not wealthy people--but, they have room in their hearts and homes for a child.
Federal Adoption Tax Credit: Did you know that there is a federal tax credit there for you to use? Thousands of dollars are available that can help with: adoption agency fees, court costs, attorney fees, travel expenses and other things that are directly related to your adoption. There is an income limit for this credit but it is relatively high. The adoption tax credit is adjusted each year based upon the cost of living allowance. The maximum credit for 2013 is $12,970. The full credit is available to taxpayers with a modified adjusted gross income of $194,580 or less, and the credit will phase out completely at $234,580.
For most adoptions, you keep track of expenses and claim that amount as the credit. However, in a foster care adoption, you can claim the entire credit no matter the amount of money you spent. The credit is available for each child you adopt, so if you adopt siblings, you could claim two credits.
Corporate Grants: Also, you may not realize that the company you work for may offer financial assistance for your adoption. For a partial list of companies that have benefits, see benefits.adoption.com
Subsidy for Full Time Military Personnel: If you are full time Military, there is a one-time reimbursement program. You can receive $2,000 per child per calendar year with a cap of $5,000. No later than one year after the adoption is final you have to have submitted a DD form 2675 in order to apply. You cannot claim expenses that were reimbursed through the Federal Adoption Tax Credit or a Corporate Matching Grant. A recent change of policy permits a military member adopting a step-child to claim reimbursement.
Loans and Grants: There are several adoption loans and grant programs available. You might start by looking for a credit union that offers a loan program for adoptive parents.
Foster Care Adoption Subsidies and Assistance: If your heart is leading you to adopt a special needs child or a child from foster care, the cost is usually significantly less. There is usually an adoption subsidy available through the state to help pay for everyday expenses and special services such as remedial educational services, physical therapy and medical care. As we discussed above, you may also take the entire amount of the Federal Adoption Tax Credit even if you don’t incur those costs.
Adoption is such a beautiful way to expand your family. Don’t let financial stress be the reason why you end up not adopting.