Adoption Financial Help for Adopting Families

We hope that you will find this resource for financial assistance programs helpful. We have designed it to try to meet the needs of adopting families.

Through this adoption tax credit you may get up to $11,000 of the money you spent in the adoption process returned to you.  This adoption tax credit is better than a tax deduction since it is based on after tax money.  The adoption tax credit is available in the year the adoption is finalized.  The adoption tax credit does have an income phase-out depending on your level of income.  The Federal adoption tax credit is part of the Economic Growth and Tax Relief Reconciliation Act of 2001.  It is advised you check with your attorney and/or your accountant on this adoption tax credit.

This adoption tax credit is discussed in more detail on the Adoption Family Resources website link Federal Tax Credit for Adoption.  Also visit the link Federal Adoption Tax Credit for Special Needs Adoption.

The link Tax Benefits for Adoption from the U.S. government website is helpful.  Another source to help you with the adoption tax credit is the link to the Adoption Tax Credit Online Course. 

You should look into the benefits offered by your employer since an ever increasing number of companies are now offering adoption assistance.   While only 12% of employers surveyed in 1990 offered adoption assistance this number has steadily increased ever since.

The Adoption Family Resources website link Adopting--Employer Benefits and the Child Welfare Information Gateway factsheet Employer-Provided Adoption Benefits may be of additional help to you.

Children with special needs and children waiting in foster care for adoptive families are available in every state. The most recent data estimate that 126,000 children are available to be adopted from foster care.  State financial assistance in the form of subsidies can provide financial help in the adoption of these children. These subsidies can also help with child care and medical care costs for many years. 

A good source of information is the Child Welfare Information Gateway website factsheet Assistance for Children Adopted From Foster Care.

For additional information about adoption financial assistance and subsidies in your state, please select from the list of State Benefit Programs below.

The Family and Medical Leave Act mandates that an employer must grant an eligible employee up to a total of 12 work-weeks of unpaid leave during any 12-month period in regard to a child that is adopted or born to a person or couple.  To see the actual text of the Act please visit U.S. Department of Labor website or the link Family and Medical Leave Act on the website Child Adoption Laws.

You may be able to save literally thousands of dollars by being aware of a section in the Omnibus Budget Reconciliation Act of 1993.  A section of this Act guarantees many adopted children the same access to health insurance as birth children. Please note that most insurance companies do not give adopting families information that is consistent with this Act.  This is discussed in more detail on the link Adoption Health Insurance Issues but if you want to review the actual text of the Act you can click on this link.

Financial Help with Special Needs Children is available from the federal government and from state authorities. Children with special needs may qualify for child adoption assistance to help cover the expenses related to their need for ongoing therapy or treatment.  It is critical to know that for both federally funded and state-funded subsidies you must apply and receive approval before the adoption is finalized, so research this option early in the adoption process.

Additional information is available on the link Federal Adoption Tax Credit for Special Needs Adoption and please visit the Adoption Family Resources website link Adopting Special Needs Infants.

When you adopt a child you often will not have a birth certificate for many months after the adoption, and this means a delay in obtaining a Social Security Number for your adopted child.  In order to apply for a child deduction on your U.S. income tax return you will need the SS# or have an Adoption Taxpayer ID Number.  This site will help you with information about a temporary child adoption identification number.

A Child Waits Foundation helps families seeking loans for an international adoption.

Costs of Adopting: A Factsheet for Families gives a general overview of child adoption costs and several resources to help defray child adoption costs for all types of child adoption. 

Gift of Adoption Fund provides financial assistance in the form of grants to adoptive parents.

God's Grace Adoption Ministry helps place orphaned children with families and helps families overcome the financial burden of adopting.

Hebrew Free Loan Association provides interest-free loans to Jewish adults who wish to adopt children internationally or domestically.

How to Make Adoption an Affordable Option is a booklet for prospective adoptive parents who are reluctant to pursue the process because they believe adoption is too expensive.

National Adoption Foundation provides financial help and support services to adopting families.

National Adoption Subsidy Resource Center helps educate parents and professionals on Title IV-E Adoption Assistance.

Please visit our home page to read about our commitment to assist pregnant women, birth parents, and adopting persons like you.