Contents
What Is Domestic Adoption?
Ideal Adoptive-Parent Qualities
Legalities of Adoption
Domestic Infant Adoption
Foster-to-Adopt Adoption
Open Adoption
Other Issues in Adoption
How to Finance an Adoption
After Your Child Comes Home
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How to Finance an Adoption
Many people assume that adoption is always expensive, but the expense of adoption
depends largely on the way you choose to adopt and the situation that has made the child available for adoption.
Domestic Infant Adoption Fees
Types and amounts of domestic infant adoption fees vary by program and state, but the following table will give you a general idea of the costs of a domestic infant adoption. Be aware that some programs have a sliding-scale fee structure or may offer discounts for waiting or hard-to-place children. If you do your own marketing, you need to figure the cost of placing ads, setting up a toll-free number, and other marketing tasks into your budget. If you use a facilitator, you’ll have additional fees ranging from $5,000–25,000.
Fees |
What They Cover |
Cost Range |
||
Application to agency |
Processing the application (there may be a small fee for the initial application and a larger fee once you’ve been approved to adopt) |
$0–550 |
||
Home study |
The cost of the social worker
overseeing your home study
(there may be additional fees to complete the home study, such
as the cost to get copies of your birth certificate) |
$1,000–3,000 |
||
Training |
The cost of the instructor and training materials (your home study fee may cover this) |
$0–500 |
||
Agency or attorney fee |
In the case of agency-assisted adoption, this may be collapsed into the other fees or paid out separately (typically called a placement fee if it’s not due until the child is placed in your home) |
$3,000–20,000 |
||
Expectant parent support |
Cost-of-living and prenatal
expenses for the potential
birth parent(s) |
Depends on state law and needs of the parent; may be tens of thousands of dollars |
||
Legal representative for birth family |
Adequate legal representation for expectant parents (this is sometimes, but not always, paid for by hopeful adoptive parents) |
$300–2,000 |
||
Medical fees |
Cost of medical care; some birth parents use their own insurance or Medicaid (not all programs asks that adoptive parents pay for this) |
$3,500–10,000 |
||
Foster care |
Most foster placements in
domestic infant adoption
charge by the day |
$25–50 per day |
||
Interstate compact expenses |
Fees for the child to leave his or her state of residence if it’s different than your own |
$500 |
||
Post-placement visits |
Social worker’s supervision of the child’s placement |
$500–1,500 |
||
Post-placement counseling |
Birth-parent support |
$45–1,000 |
||
Finalization |
Fees for the lawyer who oversees the adoption |
$800–2,000 |
Foster-to-Adopt Fees
Most foster-to-adopt programs charge only nominal fees. If you’re adopting directly through the state and not through one of their contracted agencies, the adoption may be free.
Depending on the needs of the child, some programs may even pay you to offset the cost of fostering children. There may also be government subsidies available (even after the adoption is finalized) to cover future expenses such as medical care or therapy. Don’t be shy about asking for more information about programs to cover your child’s expenses.
Fees |
What They Cover |
Cost Range |
||
Application |
Processing your application to the program |
$0–50 |
||
Training |
The cost of the instructor and training materials (your home study fee may cover this) |
$0–500 |
||
Home study |
The cost of the social worker overseeing your home study (there may be additional fees to complete the home study, such as the cost to get copies of your birth certificate); your program may or may not charge a nominal fee for a home study for a waiting child (e.g., foster-to-adopt) |
$1,000–3,000 |
||
Finalization |
Fees for the lawyer who oversees the adoption |
$800–2,000 |
How to Pay for an Adoption
There are many ways to finance an adoption. These include using your savings or retirement account or getting a credit line, but there are other ways too.
Grants and Subsidies
Your social worker is your best resource for uncovering available grants and subsidies available for adoptive parents. If you’re adopting a child who’s been identified by your state as having special needs, there may be state funding available. Adoption agencies also sometimes have grants available, especially for the adoption of waiting children or children considered difficult to place.
Federal Tax Credit
The U.S. government offers a federal tax credit to help low- and middle-income families pay for adoptions (some states also offer tax credits). The federal tax credit:
- Is applied to your tax bill. If you owe $4,000 on your annual tax returns and you spent $4,000 on adoption-related services, you’d apply that $4,000 credit to your tax bill and owe nothing in taxes that year.
- Covers costs up to $11,390. But if you adopted a child who was recognized by the state as having special needs, you can apply the full amount even if you don't spend that much.
- Can be taken across several years. If you paid $4,000 for your adoption and owe only $1,200 in taxes this year, you can apply the rest of the credit to subsequent years’ tax bills.
Employee Benefits
Many companies are starting to offer grants to employees who adopt. Some allow you to borrow a certain percentage from your 401(k) to finance adoption. Speak to your human resources director to find out whether your employer offers assistance.
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