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. You can also contact us to get your questions answered.

Foundations

Travel

Governmental Programs

  • 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.

Corporations
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 2014 and 2015) of up to $13,400 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. Please see our page about the tax credit for more information.
  • 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