One of the first thoughts that comes to mind for a potential adoptive family is, “How much Does Adoption Cost?” A Baby Step Adoption Agency understands that adoption can be a big financial undertaking. Your personal caseworker will help you create a financial plan that works with your budget and helps make the adoption process affordable. Paying for your adoption doesn’t have to be overwhelming. Please note that most grant applications require a completed home study first.
Your Adoption Finance Coach Program – Free to Families
A Baby Step Adoption Agency has forged a partnership with the nationally recognized Free Adoption Finance Coach, Kelly Ellison, an adoptive mother who created a program to assist families in raising money for their adoption. The full service program walks families through a 5 point process on the best ways to obtain funds, how to apply and write a grant, assistance in creating your profile and access to multiple webinars. The average family in the program raises $3,000! This is a FREE service for A Baby Step Adoption Agency clients.
Adoption Grants and Loans
A number of organizations offer adoption grant and/or low cost loans to assist paying for your adoption. Some are limited to certain types of children or adoptions, while others are available to any prospective parents who meet the organization’s criteria. Your caseworker can sit down and provide you with grant, loan, and funding resources that will work best for you. We are happy to provide our comprehensive spreadsheet on funding and grant programs and to guide you through the process.
For our full grant and loan education program and how to apply contact A Baby Step Adoption Agency now.
The partial list of adoption grants, loans, and funding resources listed below is for informational purposes only.
Federal Adoption Expense Tax Credit
The adoption expense tax credit is now PERMANENT! It has been increased to $13,190 for the 2014 tax year. For tax year 2014, the phase out begins with a modified adjusted gross income (MAGI) in excess of $197,880. The credit is completely eliminated for taxpayers with adjusted gross income of $237,880 or more. It is no longer refundable but can be amortized over a period of 5 years (IRS Bulletin 88389). For detailed information, visit the IRS website.
State Tax Credit
Several states have enacted tax credits for adoptive families. Some are restricted to those adopting from the state’s public system. Contact your state adoption unit for more information.
Active-duty personnel are reimbursed for one-time adoption costs up to $2,000 per child, whether adopting an infant, a waiting child or a child from abroad. If both spouses are in the military, the reimbursement increases to $5,000.
Both the number of employers providing benefits for employees who adopt (including lease when a child arrives home, reimbursement of adoption expenses, and assistance with adoption information and referral services) and the dollar amount of these benefits are growing. The average expense reimbursement now approaches $4,000 with some employers paying up to $10,000. For help asking your employer with this benefit, click here.
A Baby Step Adoption Agency reports financing adoptions through some or all of the following activities: bake sales, car washes, bowl-a-thons, grandparent or family member assistance, using their own or donated frequent flyer miles for travel, tapping into 401ks or home equity. Some other ideas to build up some savings for financing and adoption include: golf tournaments, collections at grocery stores, garage sales or online auctions/EBay, organize an adoption “walk-a-thon” with family and friends and collect pledges for every mile walked, or take on a part time job while waiting such as selling Avon/Mary Kay/Pampered Chef, etc.