This week we are talking about adoption. Yesterday, we reviewed the total costs. They can range from $0 for some children in foster care, up to tens of thousands. Most families don’t have $20k-$30k lying around. Fortunately, there are resources to help with the costs.
First, investigate the different types of adoptions. Call social services to ask about adoption. Then call a couple of agencies that specialize in domestic and foreign adoptions. As always, the internet has a wealth of information.
Here are some of the ways families receive help for adopting a child. First, there is a tax credit of $11,390 for special needs adoptions. There is also an annual tax credit of $1,000 per child. Depending on your income, you may be phased out each credit. Check with your tax advisor to see if you qualify.
These credits are not available until the adoption is finalized, so be prepared to pay all of the expenses up front. There are also credits for military personnel. If you qualify for any of the credits, understand they will not be available until after you file your tax return.
There are many places where you can receive help with adoption, but it does take a little work on your part. Check with your employer, they may offer adoption assistance as well. Also search the internet or ask an adoption agency about grants. Many families use a home equity line or other loan to finance the adoption.
Remember, you can’t call 1-800-Gimme-A-Baby. It’s not that easy. Like every good thing in life, adoption takes some work, but it is definitely worth it.
If you have a financial question for Ross, you can use the Marino on Money page.