Adoption Resources

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

For 2010: The Internal Revenue Service (IRS) released new figures related to the Adoption Tax Credit and Adoption Assistance Program. For 2010, 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 $13,170.

The Affordable Care Act raises the maximum adoption credit to $13,170 per child, up from $12,150 in 2009. It also makes the credit refundable, meaning that eligible taxpayers can get it even if they owe no tax for that year. In general, the credit is based on the reasonable and necessary expenses related to a legal adoption, including adoption fees, court costs, attorney’s fees and travel expenses. Income limits and other special rules apply.

In addition to filling out Form 8839, Qualified Adoption Expenses, eligible taxpayers must include with their 2010 tax returns one or more adoption-related documents, detailed in the guidance issued today.

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

Adoptive Families, the online adoption and parenting guide, has provided trusted adoption information and inspiration to families for over 30 years.