Is a $2,000 Adoption Possible?
Smart Financing For Your Adoption

You have decided you want to adopt, but have no idea where you will get the funding to complete your adoption. You are not alone. The good news is that there is help for almost all families.

We believe that all loving families should be able to open their arms to a child and we are happy to provide information on crossing the financial hurdles that may stand in your way of adopting.

In an average private or agency adoption, you should expect costs to be anywhere from $12,000 to $25,000 depending on the adoption situation, your state of residence, and other factors. The costs approximate those of infertility treatment, except with adoption, your chances of becoming parents are much greater and for usually less money. Many families are now choosing to forgo infertility treatments, opting for adoption instead. Thankfully, there are many options available today making your adoption one that is affordable and customizable for your needs.

To learn more about Lifetime's services and adoptive family fees, please click here.

Federal Tax Credits of $12,150
With the $12,150 Tax Credit available to families who have completed their adoptions, the cost of adoption can be very affordable. Additionally, the IRS provides a $1,000 Tax Credit per qualifying child you have per year. The tax credit phases out for taxpayers with high modified adjusted gross incomes. Although the tax credit is set to expire in 2010, proposals to make that benefit permanent have received much legislative support. Find out how you can petition your legislature to keep this tax credit.

Qualifying expenses include necessary adoption fees, court costs, attorney fees, traveling expenses, and other expenses directly related to the adoption. Adoptive parents who plan to claim the credit should file Form 8839, titled Qualified Adoption Expenses, and attach it to Form 1040. For more information and other downloads to required forms, please visit the IRS website by clicking here.

There is also a tax deduction for each qualifying child of $3,200. (Please check with the IRS for updated information.)

Employer Reimbursements
Approximately one-quarter of employers are now offering a range of benefits for their employees who choose adoption. Not only are employees eligible for some sort of paid leave, but many are finding that their employers are offering reimbursement to help defray some of the adoption expenses themselves.

Your employer may also offer an Employee Assistance Program, or an EAP. This is designed to help workers deal with dramatic situations in their personal lives. You may find that speaking with an EAP counselor can aid the ups and downs of an adoption experience.

To learn what your employer offers, contact your human resources department. The National Adoption Center has an employee adoption benefit booklet titled "Advocacy for Adoption Benefits, An Employer's Guide". If your company doesn't currently have such a program, the booklet provides suggestions on how you might have this benefit added to your employee benefit package. Contact the National Adoption Center at 1-800-TO-ADOPT for details on how to request that your employer establish a program or visit their website by clicking here.

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Military Families
The military has resources for adoptive families not available elsewhere. Active Military Families are eligible for a one-time adoption assistance subsidy program of up to $2,000 per child or $5,000 for sibling groups. These reimbursements and benefits are provided to single or married adopting parents, and can be used for domestic or international adoptions. For more information on the program, you may click here:

Military Reimbursement

Adoption Grants
There are a number of organizations offering grants to qualified adoptive families to help defray some of the costs of adoption. Please visit the specific websites listed to receive more information about these organizations and what they can do for you.

Gift of Adoption Fund
God's Grace Adoption Ministry
National Adoption Foundation
African American Enrichment Program

Government Subsidies
Federal and state adoption assistance is available to ensure that families who adopt waiting or hard to place children have the crucial services and financial resources to meet their children's continuing needs. Adoption subsidies are available for your child whether your home study was done by a public or a private agency, but will vary by state and region, so research what is available in your area. It is often easier to have your agency assist in the paperwork if you are adopting a waiting child through them. Don't take no for an answer, it can take a lot of work and you will need the help. Click here for help and more information:

Child Welfare Information Gateway

Explore your financial options and find a plan that works for your family and your situation as you begin your adoption journey.

Article by Mardie Caldwell COAP
Founder of Lifetime Adoption
Adoptive mother, host of Let's Talk Adoption and author of AdoptingOnline.com
All rights reserved, for reprints please contact us.

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