The two major financial benefits available to adoptive parents are federal tax credits and adoption subsidies. A federal tax credit is a reduction of your federal income tax in the year in which you adopt a child. The conditions for claiming this credit are complicated depending on many factors such as the year of the adoption, whether or not the child has special needs, and how much you spent on adoption expenses. Adoptive parents who did not take the federal tax credit may be able to go back as far as 2003 to benefit from the credit. For the years 2010 and 2011 the tax credit became refundable, meaning that you will get the amount of the credit back regardless of how much you paid in income taxes. For detailed current information on the federal tax credit, go to www.nacac.org. Adoptive parents are wise to explore this issue on their own since many tax preparers seldom or never deal with this issue and may be unfamiliar with the complicated conditions. An adoption subsidy is assistance provided for children with special needs as an incentive to help get children adopted. It may include ongoing financial aid, medical coverage, or other services such as respite care or therapy. Adoption subsidies should be negotiated prior to the finalization of an adoption. Adoptive parents need to familiarize themselves with these terms and with the whole issue of adoption subsidy. Case managers may give you their own opinion as to whether you qualify for adoption subsidies, but they do not have the final word. The judge at the final adoption hearing does. The adoption process can be long and complicated. It follows state and federal laws, as well as other regulations. There are mountains of paperwork for legal procedures, not to mention the many other practical aspects required to complete a successful adoption. These things add up, and they leave families searching for adoption financial assistance. There has to be help out there, right? Even for the many families considering adoption who are in stable financial situations, few have the needed funds immediately available. If you’re searching for financial help for adoption, there’s good news. There are a variety of ways to receive financial aid for adoption, and this guide will help you find one that works for you. For prospective birth mothers looking for information on financial help when placing a child for adoption, you can complete this online form to connect with us today. Why Many Families Need Help with Adoption CostsDepending on how much research you’ve already done about adoption, you may still be left wondering why the cost can be so high in the first place. Many people are surprised when they learn for the first time that private adoption costs tens of thousands of dollars or more. It’s no wonder most families search for adoption financial assistance. Adoption is not a transaction where a family pays for a baby. Rather, the costs are incurred due to the administrative, legal, medical and other practical needs of the adoption process. While it’s fair to see some of the costs as unfortunate, they are necessary to complete safe and legal adoptions. To complete an adoption, there are many professionals involved: Typically, the cost of adoption is made up of the funds necessary for all these professionals to do what’s necessary to complete an adoption. The other portion of adoption costs incurred by adoptive families is variable adoption costs, which are primarily made up of prospective birth mother expenses. The total cost of adoption is not paid out at one time. However, it is common to make large payments during the process, and it is recommended that you have a budget set and a plan to pay for all adoption expenses from the beginning. Since most families don’t have tens of thousands of dollars lying around, it’s common to ask: “Do you get financial help when you adopt a child?” Unfortunately, there is no way to guarantee financial help for adoptive parents. This is why the adoption specialists at American Adoptions advise families to do everything possible to budget for the total cost of adoption. No one should assume that financial assistance for adoption costs will be given to them. There are, however, opportunities to find financial aid for adoptive parents that are worth looking into. Financial Help for AdoptionSo, where can a family find adoption financial aid to help with adoption fees? There are plenty of options. Depending on your financial situation, and how far into the adoption process you are, some forms of adoption financial assistance will be available, while others may not. It’s always a good idea to consult a financial planner about any of these choices along with your own research if you are able to do so. One of the most popular forms of financial assistance for adoption costs is adoption grants. Grants are typically awarded by a nonprofit organization, and families do not have to pay them back. An adoption grant is, essentially, a gift. The appeal is obvious. This type of financial support for adoptive parents does come with some challenges you have to apply for each grant, you may not be awarded grants you’re counting on bit the potential benefits far outweigh any frustrations. A counterpart to adoption grants is adoption loans. Adoption loans are like standard personal loans. They typically come from a financial institution, have a set payment plan and include interest. Some adoption loans are better than others. Taking out any loan brings some level of financial risk, and many financial planners would advise that a loan be a last-resort form of adoption financial aid. However, many families have found adoption loans to be helpful. Other adoptive families have found help with the cost of adoption through fundraising. Adoption fundraising is an opportunity to be creative and get your whole community involved in your adoption journey. If you already have other children, it’s also the perfect opportunity for them to contribute to the adoption. There are so many fundraising ideas to try. Special Needs Adoption AssistanceParents adopting children with special needs may be eligible for federal and state adoption assistance. This financial support (also referred to as an adoption subsidy) is usually paid monthly and is intended to help with medical needs and other support-related expenses. Special NeedsFederal adoption assistance funds are available through the states of the Social Security Act. The definition of “special needs” has three criteria: The state or tribe determines if a child fits the criteria of special needs. Eligibility for Special Needs Adoption Assistance
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