Getting Started!

Whether you choose international or domestic adoption, the costs associated with financing an adoption can be overwhelming to most families. In the past, families often secured second mortgages or equity loans on their homes to gather enough funds to finance their adoptions. With the housing crisis, this option has mostly become a thing of the past.

The good news is that there are organizations and loan programs that offer some assistance.

One of the best resources on the internet is Global Orphan Outreach at www.globalorphanoutreach.com which offers a free service for assisting families in connecting with organizations that are actively providing adoption financial assistance.

Church support can be a good avenue for you if you are active in your church.

Many companies as well as the U.S. military have financial assistance for adopting families. Many states offer tax incentives and the U.S. federal government offers a tax credit.

States that currently offer tax incentives for adoption include: Arizona, California, Idaho, Iowa, Kansas, Maryland, Massachusetts, Michigan, Missouri, New Mexico, North Dakota, Oklahoma, Utah, West Virginia, and Wisconsin. You should of course check with your tax advisor for the latest information regarding these tax incentives.

The United States offers a tax credit unless you make over $195,000 per year adjusted gross income. If you make less than $153,000 per year, you are eligible for the full credit. The tax credit is currently $10,960.

If your child is placed with you but the adoption is not finalized until the following year, you can still claim a tax deduction for the child as your dependant in the year he or she was placed with you even when the adoption has not yet been finalized. Once the adoption is finalized, you can take the same exemptions for your adopted child/ren as you can for your biological children. An important requirement for this exemption is that families must provide more than half of their child’s support. Some adopted children receive subsidies, which may provide more than half of their support so this will affect this exemption.

The U.S. military also offers adoption subsidies to help defray the costs of adoption.

Many companies in the United States offer adoption benefits so check with your human resource department for information regarding adoption benefits.