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.
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.
