Monday, February 1, 2016

Adoption Loans and Grants/2016 Adoption Tax Credit

Want to adopt but finances are low? There are loans and grants that you can apply for in order to help with the costs.  It's not going to be easy and the money won't all come from one place.  Also, you need to realize that all of your costs will not be fully covered, but it will help.  Don't get discouraged if one option does not work for you; keep trying until you find one that does.

Some things to look into:

Your home bank: Consider starting here, they will have a better chance at refinancing your current mortgage or helping you take out a home equity loan. 
Research outside lenders:America's Christian Credit Union is one of the best.
Zero-interest lenders: It might be hard to believe but there are a few lenders out there that provide loans with no interests.  One of the most popular is Pathways for Little Feet.  
Consider a combination of a grant and loan: An example would be A Child Waits; they can provide grants as well as low to no interest loans.
Coaches at your adoption finance coach: Your adoption finance coach works closely with families to help them figure out what’s best for them.  Make sure you talk to them and set out a plan.
Adoption Tax Credit:  The most important source of financial assistance is the federal adoption tax credit which pays you back for the money you have spent for your adoption.  The IRS web-site has a lot of helpful information as to which year you claim the credit.

The adoption tax credit is adjusted each year based upon the cost of living allowance.  The maximum credit for 2016 is $13,460.  The adoption tax credit is fully available in the amount of $13,460 if your modified adjusted gross income is equal or less than $201,920.  If your modified adjusted gross income is more than $201,920 but less than $241,920, you will receive a reduced tax credit. No tax credit is available for those earning more than $241,920.00.
LawAdoption.comParents who adopted a child who has been determined to have "special needs" by the state or county child welfare agency can claim the maximum credit regardless of whether they have spent any money to adopt the child.
Step-parent adoptions do not qualify for the tax credit.

Drafted by Brittany Alness, staff member of the Law Offices of Karen S. Law, PLC.
This blog and the information contained within have been prepared by Law Offices of Karen S. Law, PLC for informational purposes only and does not constitute legal advice. This information is not intended to create, nor does receipt of it constitute an attorney-client relationship. Viewers should not act upon information found here without seeking legal counsel. All photographs shown on this blog are depictions of clients and are not actual clients of this law firm. Copyright Karen S. Law, 2016

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