Adoption Resources

Resources to Help Defray Adoption Costs

Federal Tax Credit: The federal government has a tax credit for most adoptions. See the IRS publication I-8839 for information about tax rules and changes to those rules. The tax credit is over $11,000, and is available in the tax year the adoption is finalized.

For 2009: The Internal Revenue Service (IRS) released new figures related to the Adoption Tax Credit and Adoption Assistance Program. For 2009, both the amount that adoptive parents are permitted to claim under the Adoption Tax Credit and the amount to be excluded from an employee’s gross income for qualified adoption expenses incurred under an employer-provided adoption assistance program are set at $12,150.

Also for 2009, the income eligibility phase-out range for both programs has been adjusted $182,180 – $222,180, with individuals earning more than $222,180 ineligible for either program. These adjustments are the result of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) provisions that said amounts and income limitations be indexed for inflation each year beginning in 2003.

Note: Sunny Ridge adoptive families should contact the IRS or a tax advisor for information on the tax credit or exclusion.

Employer Benefits: Many employers provide a range of benefits for families who adopt, including paid or unpaid leave when a child arrives in the home, reimbursement of some portion of adoption expenses, assistance with adoption information and referral services, etc. Your human resource department may  provide employees with information about benefits available.

Subsidies. Federal and State adoption subsidies (or adoption assistance) may be available to help adoptive parents pay for the ongoing care of children with special physical, mental, or emotional needs. In addition, some children qualify for Supplemental Security Income (SSI) or Medicaid coverage. The NAIC factsheet Subsidized Adoption: A Source of Help for Children with Special Needs and Their Families provides more information on this topic.

Adoption Loans and Grants. Adoptive parents may be eligible to receive a loan or grant to offset some of their adoption costs. Such programs may have specific requirements regarding the type of adoption that is eligible, or they may give preference to families with the greatest financial need or with other specific characteristics.

Gift of Adoption Fund is one such organization, hoping to put adoption in reach for all children who are in need of a family. For more information or to request a grant application, visit www.giftofadoption.org