Grants for Adoption Fees
The financial investment required for the pursuit of domestic and foreign adoption is an astonishing reality that confronts prospective adoptive parents. This financial obstacle is not insurmountable. Public and private grants and benefits programs exist for the purpose of assisting prospective adoptive parents in procuring the necessary funds to satisfy all obligatory expenses accrued during this process of adoption.
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North American Council on Adoptable Children (NACAC): Federal Title IV-E Adoption Assistance
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Title IV-E Adoption Assistance (also known as Adoption Subsidy Benefit) helps parents, who are seeking to adopt special needs children within the foster childcare public welfare system, by providing monthly payments for medical treatments, monthly maintenance payments for daily living expenses, partial reimbursement of the state’s subsidy payments and other supportive services until the child reaches 21 years of age. There are three qualifying factors which determine special needs status, which a child must meet to fulfill eligibility requirements for federal adoption benefits. First, the state must conclude that the child cannot be restored to his birth parents. Second, the state must determine that the child’s ethnicity, age, medical condition, sibling group and/or disabilities are complex factors which increase the difficulty for successful placement and significantly reduce the probability for adoption. Third, the state must supply evidence that its attempts to place the child for adoption, sans benefits of financial assistance, have failed.
Federal Qualified Adoption Expense Tax Credit
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The federal adoption expense tax credit allows qualifying adoptive parents to take a tax credit for adoption fees, court fees, legal fees, traveling expenses and other adoption related expenses for the legal adoption of a child. The adoption tax credit only applies to nonreimbursed expenses. There is an income limitation that is based on the adoptive parent’s modified adjusted gross income (MAGI) which determines their eligibility. The maximum qualified adoption expense tax credit for the 2010 calendar year is $12,170. If the adoptive parent’s MAGI is greater than $182,520, but less than $222,520, their tax credit will be reduced. If their MAGI exceed $222,520, then they will be rendered ineligible and the tax credit will be eliminated.
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Adoption Tax Exclusion for Employees
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Adoptive parents employed by organizations that offer adoption benefits may be eligible to receive reimbursement of up to $12,170 for qualifying adoption expenses. Additionally, the employee is excluded from paying taxes on this adoption benefit. However, the employee cannot apply for both the Adoption Tax Credit and the Adoption Tax Exclusion.
National Military Family Association (NMFA): Adoption Expenses Reimbursement Program
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Active duty military personnel may qualify for a military subsidy for the adoption of a child from a state authorized public or private adoption agency. The service member may qualify for reimbursement of agency fees, adoption fees, placement fees, legal fees, court costs, temporary foster care expenses and medical and hospital expenses accrued by both the adopted infant and her biological mother. The service member may also receive travel and transportation allowances. Surrogate parenting does not qualify for the NMFA Adoption Expenses Reimbursement Program.
State Subsidy Non-IV-E Adoption Assistance
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If a child is deemed ineligible for the Federal Title IV-E Adoption Subsidy Benefit, then the adoptive parents may apply for the Non-IV-E State Adoption Assistance from the state that has custody of the foster child. The state will also determine whether the child qualifies to receive Medicaid benefits or other medical assistance coverage. The adoptive parents may also apply for a state-subsidized one-time reimbursement of up to $2,000 for nonrecurring adoption expenses.
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