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.
For adoptions finalized in 2015, there is a federal adoption tax credit of up to $13,400 per child. The 2015 adoption tax credit is NOT a refundable credit, which means taxpayers can only get the credit refunded if they have federal income tax liability.
The credit is paid one time for each adopted child, and should be claimed when taxpayers file taxes for 2015 (typically in early 2016).
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. In 2015, families with a modified adjusted gross income below $201,010 can claim full credit. Those with incomes above $241,010 cannot claim the credit; those with incomes from $201,010 to $241,010 can claim partial credit.
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. The NACAC webpage includes information on:
- Adoption taxpayer identification number
- Adoption credit at a glance
- Form 8839, qualified adoption expenses
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 845-803-4837 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.
A Child Waits Foundation is a Massachusetts foundation in Pittsfield, Massachusetts that offers grants and loans. Their mission is to increase the number of children who are adopted by making available low interest loans to eligible families to help with some of the costs of adoption.
Telephone: 866 999-2445 (866 999-child)
FAX: 518 794-6243
Postal address: 1136 Barker Rd, Pittsfield, MA 01201
Email for General Information: email@example.com
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 firstname.lastname@example.org.
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