September 22, 2023

Epic Law

The Law Folks

Can You Afford an Adoption?

While many adoptions can be quite costly, there are financial programs and resources available to help you if you know where to look. Here are just a few programs to think about.

You may be able to reduce the cost of your adoption by applying for an adoption tax credit on your federal tax return. The credit is up to $10,000 per adoption. This tax credit benefits moderate income families the most as it phases out high income families. The phase out starts once your adjusted gross income reaches $150,000. The tax credit is totally eliminated once gross income reaches $190,000.

Qualified adoption expenses include adoption fees, attorney fees, travel costs, meals and lodging. To learn more about the Federal Adoption Tax Credit you should consult a tax professional and the IRS Publication 968.

About 25% of companies in the U.S. offer some type of adoption benefits to their employees. Typical benefits might include paid leave, unpaid leave or reimbursement of adoption expenses. Contact the human resources office where you work.

Some families use their credit cards to accumulate frequent flyer miles to reduce costs of air fare. Some families take out a 2-4 yr. personal loan to cover adoption expenses.

There are many companies that can help you have a fundraiser in which you can raise some cash quickly. Some families have spaghetti dinners at their church or gather pledges at a race or walkathon. Be creative…people do enjoy helping for good causes like adoption. If you are determined to add a child to your family, then you will find the money needed. Best of luck to you!