Adoption Financial Information - FYIs

(from hrc.org)

Raising a child is expensive. So is bringing one into your life through adoption. Here are some ways that you might be able to defray the costs.

Tax BreaksA federal adoption tax credit of $10,000 per child is available for domestic adoptions. The credit increases for domestic adoptions of children with special needs.

People earning more than $75,000 or more in adjusted gross income receive a reduced tax credit. People earning $115,000 or more receive no tax credit.

Several states also offer tax credits for couples adopting children from the state's child welfare system. To learn if your state offers a tax credit, contact your state department of taxation, tax attorney or state adoption specialist.

Special Needs Benefits
Federal and state adoption subsidies may be available for the ongoing care of children with special needs. Check with your adoption agency.

Employer Benefits
Ask if your employer offers:

Assistance with adoption information and referral services
Reimbursement of a portion of adoption expenses, including medical expenses of the birth mother
Paid or unpaid leave when the child arrives.
Federal Family and Medical Leave Act
The Federal Family and Medical Leave Act guarantees that employees who adopt can take up to 12 weeks of leave with no interruption in health benefits if they meet the following conditions:

They have worked for at least the last 12 months for the same employer
They worked at least 1,250 hours over the previous 12 months
They work for an employer who has 50 or more employees.
For more information, go to the U.S. Department of Labor website.

Military Subsidies
If you are an active-duty member of the military, you may be eligible for reimbursement of up to $2,000 in one-time domestic or international adoption costs, according to the National Endowment for Financial Education. If you adopt a child with disabilities, he or she also may be eligible for up to $1,000 a month in assistance under the military's Program for Persons with Disabilities.

For more information about adoption costs and financial assistance, contact the National Endowment for Financial Education, a nonprofit foundation devoted to helping people control their finances.