Many couples and individuals who want to adopt a child wonder how they will be able to afford the costs associated with the adoption process.

At Barker, we understand your concerns and want to provide you with information that can help you explore your options for financial assistance with adoption expenses. We have listed resources and information to assist you as you go forward with your plans to build your family through adoption.

We recommend you contact a tax or financial advisor to learn what is applicable to your specific adoption situation.

Federal Adoption Tax Credit:

A tax credit is the amount that can be subtracted from the taxes you owe for expenses incurred in the adoption of a child.

For taxable years beginning in 2009, the credit allowed for an adoption of a child with special needs is $12,150. For taxable years beginning in 2009, the maximum credit allowed for other adoptions is the amount of qualified adoption expenses up to $12,150.

The available adoption credit begins to phase out for taxpayers with modified adjusted gross income in excess of $182,180 and is completely phased out for taxpayers with modified adjusted gross income of $222,180 or more.

Employee Benefits:

A growing number of corporations and government agencies are offering adoption expense reimbursements to their employees.

Check with your company’s Human Resource Department to learn if any adoption benefits are available. If your company has not established a program, ask them to consider it.

Two resources that can assist you with this are The National Adoption Center that has information on advocating for adoption benefits with your employer and the Adoption Friendly Workplace, a program of the Dave Thomas Foundation for Adoption that provides information on adoption benefits, and encourages companies to develop an adoption benefits program if one does not exist.

Adoption benefits programs can provide financial reimbursements for adoption expenses such as referral services, legal expenses, agency fees and medical expenses, as well as cover paid or unpaid leave time.

Military Benefits:

The military provides an adoption reimbursement of up to $2,000 per adoption of a child for qualifying one-time expenses to active-duty personnel. There is a maximum limit of $5,000 in a given year.

The adoption services must be provided by a qualified adoption agency. Benefits are paid to the adoptive family after the adoption is finalized. If a family adopts a child with disabilities, the child may be eligible to receive up to $1,000 a month under the military’s Program for Persons with Disabilities.

Additional information is available here. There is also a fact sheet on Adoption Assistance for Children Adopted from Foster Care through the Child Welfare Information Gateway website.

Adoption Assistance Programs:

Many waiting children are entitled to state and/or federal adoption assistance payments (also known as subsidies). The subsidies are based on the child’s needs or eligibility and not on the family’s income.

A child who is eligible will usually receive a monthly payment until he or she is 18 years of age. Adoption assistance can also come in the form of Medicaid insurance and other forms of medical assistance and/or a service subsidy.

For more information on subsidies, contact the North American Council on Adoptable Children (NACAC).

NACAC operates a National Adoption Subsidy Resource Center to educate parents and professionals on Title IV-E Adoption Assistance and provides information for families adopting a child from the public foster care system and who may be eligible for reimbursement of non-recurring adoption expenses (e.g. home study, legal fees, travel) .

You may also want to contact the National Adoption Assistance Training Resource (NAATRIN) at 1-800-470-6665.

Grants and Loans:

A loan may be an option to help you cover immediate and large expenses that will be reimbursed through employee adoption benefits, the military or the federal adoption tax credit. You may want to start exploring this option by contacting several financial institutions. There are also organizations and foundations that provide grants for families who are in need of financial assistance to meet some adoption expenses. As you begin to research your options, listed below are a few organizations to get you started:

Helpusadopt.org is a national non-profit financial assistance program that will provide qualified couples and individuals with grants up to $15,000 towards their adoption expenses.

The National Adoption Foundation is an organization that was started in 1994 by adoptive families who believed that adopting families needed to have more financial support and advocacy. NAF’s financial programs utilize a combination of corporate partnerships and private funds to enable them to award grants to families for expenses associated with the adoption of their children. Grant awards range from $500 to $2,500.

A Child Waits Foundation has a grant program that is specifically designed to help families adopt older children and children with disabilities who live in international orphanages. The low interest loan is given to families who have exhausted other adoption financial aid options and could not proceed with the adoption process without this help.

Gift of Adoption provides financial assistance to families who might not otherwise be able to afford to adopt a child who is in need of a permanent home. Grants up to $7,500 are available to families adopting domestically or internationally.

Sliding Scale Fees:

An adoption agency uses a sliding scale fee for its services based on the family’s income. If you are exploring the option of working with a private licensed adoption agency, ask if the fees are structured on a sliding scale and what services are included. A sliding scale can make adoption services more affordable for more families. At Barker, we use a sliding scale fee for our Domestic Programs.

Installment Payments:

Most adoption agencies do not expect payment for adoption-related services at the beginning of the adoption process. Usually adoption agencies will have adopting families pay the fees on an installment basis such as at time of application, prior to the home study interviews beginning, when a dossier is sent to an agency in another country or at time of placement. This format of paying for services in installments as services are rendered allows a family to budget for adoption expenses. When selecting an agency, ask about their procedures for payment of fees. At Barker, all of our programs have fees paid on an installment basis with a schedule of payment discussed at the beginning of the adoption process.