Adoption Financial Assistance
The following information may help you as you prepare to meet the costs of adopting a child. Please feel free to contact Bright Futures should you have any questions, concerns of comments about this information.
Since 2012, there has been a federal adoption tax credit for various amounts depending on the year.
The credit is paid one time for each adopted child, and should be claimed when taxpayers file their federal taxes.
To be eligible for the credit, parents must:
- Have adopted a child other than a stepchild – A child must be either under 18 or be physically or mentally unable to take care of him or herself.
- Be within the income limits – How much of the credit parents claim is affected by income.
For more information, go to the website of the North American Council on Adoptable Children: www.nacac.org/taxcredit/taxcredit.html or contact the Internal Revenue Service.
We suggest that you talk to your Human Resources or benefits department as many employers have generous benefits for employees who are adopting including reimbursement for certain expenses.
Active duty members of the military are eligible for up to $2000 in qualifying expenses in a year for the adoption of a child. If multiple children are adopted, the maximum reimbursement increases to $5000 per calendar year. Qualifying expenses include legal fees, agency fees, placement fees, and certain medical expenses.
To qualify, you must be serving continuous active duty for at least 180 days. Adoptions must be arranged by a qualifying adoption agency. To receive this benefit, register with the finance office of your local military installation after placement of your child. Submit your request for reimbursement within one year of finalizing the adoption. For more information, go to www.militaryfamily.org/info-resources/adoption.html.
Laws have mandated that all insurance companies offer and provide dependent benefits to a child being adopted by the policy subscriber. This coverage usually takes place upon placement of a child for the purpose of adoption. Check with your medical insurance representative to understand how such benefits work.
The National Adoption Foundation was established in 1994 by adoptive parents who experienced first hand the issues and unmet needs of adoptive families for information, advocacy and financial support. The National Adoption Foundation focuses specifically on the financial needs of the adoption community and the challenges faced by families in the adoption process.
We understand that there are financial barriers to many wonderful, potential parents that cannot manage the high costs of adoption without assistance. The National Adoption Foundation has proudly helped over six thousand adoptive parents since 1993 to successfully grow their families with financial assistance from grants, loans and various other programs. They can be reached at 914-407-4193 or at email@example.com.
Helpusadopt.org is a national non-profit 501(c)(3) financial assistance grant program providing qualified couples and individuals – regardless of race, ethnicity, marital status, gender, religion, sexual orientation, or disability – with grants of up to $15,000 towards their domestic, international, foster, or special needs adoption expenses. They can be reached at 917-684.5484 or at firstname.lastname@example.org.
God’s Grace Adoption Ministry, Inc. was established in 1998 as a non-profit organization dedicated to helping place orphaned children of the world into forever families. GGAM is not an adoption agency, but rather works in cooperation with the agency to assist with the family’s financial needs.
GGAM seeks to help Christian families overcome the financial burden of adopting children through grants. They can be reached at 209-572-4539 or email@example.com.
ABBA Fund offers interest free loans and an Adoption Grant Fund for Christian families. ABBA Fund has one application to complete whether you are applying for the family grant fund program or an interest-free loan. For more information visit www.abbafund.org or call 888.775.3422