Financial Aid in Adoption

Federal tax credit: Most of the costs of an adoption will be returned to you through federal tax credits. Effective January, 2002 there is a $10,000 per child credit that you can receive for adoption expenses. You should get Publication 968 – Tax Benefits for Adoption, which can also be downloaded from www.irs.ustreas.gov or www.AdoptionTaxCredit.com

State tax credit: Contact your state Division of Family Services and State Tax Office to ask about your state’s tax credits for adoption or to find out if you qualify for any special state subsidy programs. Information can be found at http://www.state.yourstate.us and http://www.adoptionfinancing.com

Employer benefits: There are many corporations that have adoption assistance programs. Many employers provide their employees with adoption benefits, such as paid leave, unpaid leave, or adoption reimbursements. You can find much information about adoption benefits through employers at http://www.adoptionbenefits.com or http://adopting.org/employer.html

Military, Nonrecurring Program: There is a one-time subsidy program available for full-time military personnel. Currently adoption couples or singles can receive up to $2000 per child or $5000 maximum for siblings.
Many military personnel do not know this is available to them. Military families are entitled to adoption benefits of up to $2,000 a year for reasonable and necessary expenses associated with adoptions finalized after October 1, 1990, whether they are infant adoptions, international adoptions, or adoptions of children with special needs. Information can be found at http://www.militaryadoption.com/

Nonrecurring Federal Adoption Program: This is a one-time federal adoption program, administered by the states, and includes foreign-born children adopted by U.S. Citizens.

State Reimbursement: A reimbursement for non-recurring adoption expenses (agency fees, legal costs, and transportation) is available through each State for families who adopt children with special needs (children from minority cultures). Half of the expenses are paid through State funds, the other half through federal funds up to $2,000. The information can be found at http://www.adoptiveparents.com/pages/reimbursement_for_non-recurring_expenses.php

Dependency Exemption: Tax Savings: Information per state can be found at http://www.pueblo.gsa.gov/cic_text/children/adoption/helpc.html

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