While private adoption costs can be expensive, there is some financial assistance available to help growing families. Here are the most common options for hopeful parents looking to finance their adoption:
Federal Adoption Tax Credit: As of 2021, the Adoption Tax Credit allows a significant tax credit. Meaning for adoptions finalized in 2021, there is a federal adoption tax credit of up to $14,440 per child. The 2021 adoption tax credit is NOT refundable, which means taxpayers can only use the credit if there is federal income tax liability.
Adoption Learning Partners: Offers an online course to help adoptive families determine their eligibility for the adoption tax credit, understand how the tax credit works, create a system for tracking and documenting expenses, and prepare for filing taxes.Adoption Taxpayer Identification Number
Internal Revenue Service: Answers common questions about the adoption taxpayer identification number, the temporary number assigned by the Internal Revenue Service to a child pending finalization of his or her adoption.Adoption Tax Credit
North American Council on Adoptable Children (2017): Provides Federal tax credit information for parents adopting a child with special needs.
Employer Assistance: Some employers, including the US Military, provide financial assistance and leave from work. You should check with your employers’ HR department to see what adoption benefits exist.
Adoption Loans: Adoptive parents may consider traditional lines of credit, such as credit cards, home equity loans or retirement accounts, as well as low-interest adoption loans and religious organizations that offer financial assistance specifically for adoptive families. However, it is recommended that you speak with a financial advisor before taking out a loan, as this money will eventually need to be paid back.
America’s Christian Credit Union offers loans for prospective adoptive families. Its mission is “To Reach, Serve and Teach,” and since 2009, more than over 1,300 children have found their forever family through ACCU’s adoption loan program. Click here to visit ACCU’s website.
Adoption Fundraisers: Many families turn to creative adoption fundraising ideas to help finance their adoption. Consider online adoption fundraising on websites like Go Fund Me page, or host a traditional event, like a yard sale, bake sale or golf tournament.
At A Child’s Hope, we are committed to helping you reach your family-building goals. To learn more about adoption expenses, our services and your financing options, contact us today to schedule a no-obligation consultation.