Growing your family through adoption doesn't mean breaking
the bank. With updated tax credits and better employee benefits
adoption has become more and more affordable. Unfortunately,
many adoptive parents don't know what types of financial
help they are entitled to. Whether you are thinking about
a domestic or an international adoption there are ways to
defray the costs of agency and attorney fees, transportation
costs and birthmother expenses.
Employee Benefits and Assistance Programs
Many companies offer their employees help with their adoption costs through
Employee Assistance Programs (EAPs). EAPs were created to help employees
with dramatic and/or life-changing situations or problems. Employers pay
EAP providers to help their employees with referrals, appropriate expenses,
and support. If you are a full time employee with a company offering an EAP,
you could be directly reimbursed for adoption expenses ranging from $2,000-$10,000.
Paid or unpaid leave when your child comes home, medical expenses for birthmothers
and adoption educational workshops may also be included benefits of your
employee package.
Talk to your Human Resources Department and ask your company
if they offer any adoption-related benefits. (If they offer
an EAP, you may want to call directly.) Your company doesn't
offer these benefits? Make it known that they are needed
and wanted by their employees!
Tax Credits
The Hope for Children Act (H.R. 622), passed in 2002, allows families to claim
the $10,000 tax credit for qualifying adoption expenses, beginning with expenses
that occurred in that year. This credit is more valuable then a deductible
because adoption expenses are subtracted dollar for dollar against your tax
liability. You also carry over the claim and take the credit for up to five
years or whenever you reach the $10,000 cap (whichever comes first.) For
a domestic adoption the tax credit must be taken after you have legal custody.
For an international adoption the tax credit can be taken only after finalization.
For details call the IRS at 1-800-829-1040 or go to their
Web site: www.irs.gov. Ask a tax attorney about specific
requirements. Take an online course called "Understanding
the Adoption Tax Credit" for free at www.adoptionlearningpartners.org.
Loans and Grants
Borrowing money to fund an adoption is never ideal and should be done with
caution. The National Adoption Foundation has established a $9 million loan
bank for loans to adoptive families. They are usually small (about $2,500).
You can call for an application at (203) 791-3811 or go to their Web site
at www.nafadopt.org. Unfortunately there aren't many grants available to
adoptive parents. The National Adoption Foundation does offer grants ranging
from $500 to $4000. You can download a grant application from their site.
Just remember to create a budget and stay within it, no
matter how promising a situation with a prospective birthmother
looks. Randie Bencanann, Adoption Connection co-director
says, "Some adoptive parents feel like if they don't
go for one situation then another will never come along.
This is not true!" Remember, no matter what your adoption
budget is you can be successful.
Written by Leah Sheldon
©2003. Adoption Connection. All Rights Reserved.
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