subject: Obtaining Financial Aid For Adoptive Parents [print this page] There is a growing trend toward using the healthcare insurance of the adoptive parents to cover the medical expenses of the birth mother. Some banks and financial institutions have loan programs in place to offer low interest loans to qualified applicants.
A couple that is contemplating adopting a child but does not have the necessary funding to pay all of the costs associated with the procedure should do research to find out what financial options are available that are relevant to their personal situation. The cost for a private or agency adoption will cost between $12,000 and $25,000, depending on the circumstances. Adoptions can be expensive, especially international adoptions. Over the last decade, because of the growing awareness of the expense associated with adoption, more financial aid options have become available to individuals wanting to adopt.
There is a growing trend toward using the healthcare insurance of the adoptive parents to cover the medical expenses of the birth mother. Some banks and financial institutions have loan programs in place to offer low interest loans to qualified applicants. These loans are used to help cover the cost of adopting children.
A federal tax credit of $13,170 is available to those who have completed the legal procedure of adopting. The IRS allows a $1,000 tax credit per year for each child a family adopts. This tax credit will expire at the end of 2011, but there is legislation in place to make this tax credit a permanent benefit. Financial aid benefits can be used by adoptive parents for court costs, attorney fees, adoptive fees, or any other expenditures pertaining to an adoption. Parents of children who are adopted qualify for a yearly tax deduction of $3,200 per child. In addition to the federal tax credits, some states offer a tax credit or subsidy for adoptions in their state. Parents receive more financial aid from the state for the adoption of children with special needs.
The military offers financial aid to active military personnel who are adopting a child. Parents are reimburse $2,000 only once for an adoption. The amount goes up to $5,000 for the adoption of multiple children. Many private companies and government agencies offer aid to their employees in the form of a reimbursement once the adoptive procedure has been finalized. Reimbursements to offset costs are also offered to some state employees, including teachers.
There are many charitable organizations offering grants to adoptive parents. Many religious affiliated non-profit organizations provide grants to Christian families to help overcome any financial burden that comes with adopting children. Federal and state assistance is available for hard-to-place children with a loving and caring family. These government subsidies ensure that economic resources and services are accessible to assist families in successfully adopting a child.
by: Christine Harrell
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