FUNDING YOUR ADOPTION

Adoption is a significant financial undertaking for most families. Fees vary depending on the range and type of adoption services provided, the program selected, and the related expenses, including travel. Our fee schedules provide detailed breakdowns on pre-placement, child-placement, and post-placement fees by country, and are listed in our Adoption Services and Programs Guide. If you are comparing fees among different agencies, it is critical to understand exactly which services are included for each stated fee.

There are many opportunities for you to make your child’s adoption more affordable, including tax credits and deductions, WHFC subsidies, general adoption grants, loans, and other funding resources. Here are some places to begin.

TAX CREDITS & DEDUCTIONS

Federal Adoption Tax Credit – Tax benefits for adoption include both a tax credit for qualified adoption expenses paid to adopt an eligible child and an exclusion from income for employer-provided adoption assistance. The credit is nonrefundable, which means it is limited to your tax liability for the year. However, any credit in excess of your tax liability may be carried forward for up to five years. The maximum amount (dollar limit) for 2016 is $13,460 per child. 

You can claim the credit on your federal tax return for the year in which your child’s adoption becomes final by using Form 8839. This is an important financial benefit because it is a dollar-for-dollar reduction in your tax liability. Income limits apply. For more information, consult with your tax preparer or see:

In addition to the adoption tax credit, you may be able to exclude certain amounts your employer paid for qualifying adoption expenses from your gross income for federal tax purposes.

Individual State Deductions

 

Retroactive Claims

 

Check with your tax preparer for deductions you may be eligible for within your state of residence. For example, Massachusetts residents can claim an exemption for the full amount of fees paid to adoption agencies. Contact your state’s Department of Revenue or Taxation or your State Adoption Specialist for more information. State Adoption Specialists can be found at The Child Welfare Information Gateway.

 

You may be able to claim newly discovered tax benefits retroactively for up to 3 years. File Form 1040X to correct an error in a prior year’s federal return to collect a refund if one is due.

ADOPTION BENEFITS IN THE WORKPLACE

Employer Benefits

 

Advocating for Adoption Benefits

Military Subsidies

Find out if your employer offers adoption benefits by contacting your Human Resources Department. You may also check with the National Adoption Center at 800-TO-ADOPT (800-862-3678), or visit the Dave Thomas Foundation for Adoption.

If your company does not offer adoption benefits, you might consider proposing them. The Adoption and Workplace Initiative, sponsored by the National Adoption Center and the Dave Thomas Foundation for Adoption, has developed materials to help you advocate for adoption benefits in the workplace.

The US Military will reimburse active-duty personnel for most one-time adoption costs up to $2,000 per child or up to $5,000 per year for qualifying expenses for adoptions arranged by a qualified aodption agency.

Adoption Grants and Loans

The following providers of adoption grants and loans are independent of Children of the World, Inc.
Please be advised that the information listed can change without notice.
You may discover additional resources by conducting your own Internet search.

  • A Child Waits provides grants of up to $5,000 and low-interest loans of up to $10,000 to families adopting internationally who have exhausted all other financial options and cannot proceed with their adoption without help.

  • Both Hands awards grants to help reduce the financial barrier to adoption for families.

  • Gift of Adoption provides $1,000-7,500 grants to qualifying families adopting domestically or internationally, with the average grant totaling $3,500.

  • Help Us Adopt offers families demonstrating significant financial need grants of up to $15,000 towards domestic, international, foster or special needs adoptions.

  • Pathways for Little Feet provides interest-free loans to qualifying families based primarily on (but not limited to) financial need.

  • United Healthcare Children's Foundation provides grants to cover prescribed medical services (not fully covered by insurance) for children in need.

  • The ABBA Fund provides married Christian couples interest-free loans to cover adoption expenses.

  • God's Grace Adoption Ministry provides matching grants in the $2,500 range, or assistance with fundraising, for Christian families with annual household incomes of $60,000 or less.

  • Golden Dawn Adoption Assistance provides grants of up to $2,000 to Christian families adopting children with special needs and other hard-to-place children.

  • Lifesong for Orphans offers interest-free loans of up to $12,000 to Christian families based on financial need and available funds.

  • The Lydia Fund offers married Christian couples a grant toward international adoption costs.

  • Shaohannah's Hope (also known as “Show Hope”) provides grants to qualifying Christian families for international, domestic and foster child adoptions.

TRAVEL ASSISTANCE

We suggest you contact the airlines to inquire about a reduced rate or waiver of fees for adoption-related travel. You may also want to consider asking family members or friends for a donation of frequent flyer mileage or credit-card points that are redeemable for travel

OTHER GOOD RESOURCES

  • Research home-equity loans or refinancing your home.
     

  • Borrow from a 401(k) or retirement account. Consult your tax advisor or financial planner regarding this loan option and how it will affect your future retirement finances.
     

  • Borrow from a life insurance policy. Cash-value life insurance policies often allow you to borrow against the policy. Consult your insurance agent as to whether this option is available to you.
     

  • Consider accepting a loan from family or friends. This can be done as formally or informally as you prefer.
     

  • COTW can accept financial gifts from family or friends on your behalf; however, because the gift is for your child’s adoption, not COTW, it would NOT qualify as a tax-deductible donation.