Financial Aid: Adoption Grants, Loans, and Tax Credits
The following is a brief list of sources of possible assistance. IAC does not specifically endorse nor guarantee the availability of any of the following.
- Help Us Adopt offers adoption grants up to $5,000. They provide grants to LGBT and heterosexual families.
- Adopt America Network offers subsidies to families adopting from foster care.
- A Child Waits Foundation offers loans to adoptive parents adopting internationally.
- Gift Of Adoption Fund offers grants ranging from $3,500 to $7,000 to adoptive parents.
- God’s Grace Adoption Ministry offers adoption grants and no-interest loans to eligible Christian adoptive families.
- Jewish Free Loan Association offers interest-free loans.
- National Adoption Foundation offers grants and low interest, unsecured loans to adoptive parents.
- Waiting Child Revolving Loan Fund offers no interest loans for children adopted with special needs.
- NZMG Foundation offers a $1000 grant to North Carolina families/individuals.
- Northwest Airlines offers significant fare discounts for international adoptions.
- Adoption Assistance Program (AAP) can offer financial aid and Medi-Cal to parents of eligible children.
- Adoption Tax Credit grants eligible adoptive families an income tax break of $13,170 for adoption-related expenses.
- Military. Active-duty military families can receive reimbursement of up to $2,000 for adoption costs. Contact your military branch for more information.
- Non-Recurring Adoption Expenses reimburses families for up to $400 of non-recurring adoption expenses for some adoptions.
Many employers help employees adopt children by offering benefits from referral help and extended leaves to cash payments that range from $1,000 to $10,000 or paid leave. For more information, contact your employer or view the National Adoption Center’s list of employers offering adoption benefits at http://www.adopt.org.
Tax Credits & Tax Deductions
- IAC strongly recommends that you consult with your tax advisor regarding all tax issues and how they may or may not relate to you.
- If eligible, a Federal Adoption Tax Credit (for 2011 and 2012) of up to $13,170 per child is available. The amount of money you spend in adopting a child (a child that is not related to either you or your spouse) can be deducted directly from your taxes. Expenses that qualify include adoption fees, court costs, attorney fees, travel expenses and other expenses directly related to the legal adoption of an eligible child. There are limitations (related to earned income and other items) but the tax credit reduces the cost of adoption, after the fact. IRS also states that “If your modified adjusted gross income (AGI) is more than $185,210 (for 2011), your credit is reduced. If your modified AGI is $225,210 or more (for 2011), you cannot take the credit.” For additional information, please go to the U.S. Internal Revenue Service’s website at http://www.irs.gov/taxtopics/tc607.html
- If eligible, approximately 20% of all fees are tax deductible as allowed by law because IAC is a nonprofit.
Military Family Reimbursement
- Public law 102-190 effective December 5, 1991, established a permanent adoption reimbursement program for active duty members of the military services. An active duty member of the military services who incurs expenses for the adoption of a child under age 18 may be reimbursed up to $2,000 per child for qualifying expenses. Couples where both spouses are members of a military service may not receive reimbursement under the program totaling more than $5,000 in any calendar year.
- “Active duty service members in the Armed Services and the US Coast Guard, and commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration are eligible for reimbursement up to $2,000 for certain qualifying expenses. The Department of Defense (DoD) also has an official instruction (DoD Instruction number 1341.9) which outlines policy concerning reimbursement and guidelines concerning the granting of leave and deferments at the discretion of the commander. The Defense Finance and Accounting Service (DFAS) is the proponent for reimbursement through the use of DD Form 2675. Recent legislation has provided for 21 days of non-chargeable leave for service members who are adopting a child.” (http://www.nmfa.org/site/PageServer?pagename=reus_adoptionintro)
For additional information go to www.nmfa.org