This article was originally published by Herring & Mills PLLC on www.parkerherringlawgroup.com
By taking advantage of the federal adoption tax credit, US Military benefits and employer advantages, thousands of American families are eligible and receive financial benefits each year for the cost associated with an adoption. Here’s a quick breakdown of those three methods:
Federal Adoption Tax Credit
The federal adoption tax credit (FATC) allows a monetary boost for adopting families whose gross annual income is not over $200,000. For those families which qualify, the federal tax credit provides up to $13,460.00. You can find more information on the FATC here. We’ve written about the federal adoption tax credit on this blog before.
“My wife Priscila and I have adopted twice through A Child’s Hope. Our two boys – one adopted in 2008 and the other in 2013 – are priceless to us, but the Federal adoption tax credit helped make the fees and expenses affordable for us. We both work in research; I am a medical writer and my wife is a research scientist.”
— Bill Siesser
Employer / employee adoption benefits
Many employers across the country also provide the benefit of financial assistance once a child is placed in the adoptive home of its new parents. Check with your Human Resource department at your company to see what benefits or advantages there might be (if any) which your company provides.
This financial assistance from employers can take the form of a lump sum, or payment of certain fees related to an adoption or partial reimbursement to employees for expenses. Each company that offers financial assistance varies in what the payment is, but the nationwide average is around $4,000, with a range generally from $3,000 to $5000. The application process with businesses and employers tends to be relatively simple and easy.
Why do companies do it? Businesses justify these benefits as an investment in retaining their employees, and that the payment towards adoption increases worker loyalty to the business. They see it as a win-win, since training new employees is almost always more expensive than retaining current staff.
Some companies are now also offering family leave for adoption, which is a benefit that can lower the cost of your adoption if the leave is paid. (Here’s a list of America’s top adoption-friendly workplaces.)
US Military adoption benefits
The United States Military Service is an employer too, and servicemen and women in the armed forces are eligible in many cases to take advantage of adoption credits while serving. The military can be quite adoption friendly.
“The military provided us with $3,000 as financial assistance for our son Joe Joe’s adoption. Overall, the military has been extremely supportive of our adoptions.”
- Devon Donahue, wife of a U.S. Army Officer