Financing Options

 

Many things come along with international adoption. Joy, love, excitement, anticipation and fees. Application fees, medical expenses, homestudy costs…notary charges, shipping costs, phone bills…travel expenses, attorney fees and government charges…the list goes on and on.

It seems as though no two international adoptions cost the exact same amount of money, but all of them are, to varying degrees, expensive. There are a variety of ways to defer some of these costs, or at least spread them out over a longer period of time. Here are a few of the financing options that people have found successful.

Federal Adoption Expense Tax Credit: You may be able to take a tax credit of up to $10,390 for qualifying expenses paid to adopt an eligible child (including a child with special needs). The adoption credit is an amount subtracted from your tax liability. Visit our Federal Adoption Expense Tax Credit Information Page.

State Adoption Expense Tax Credit or Deductions: Many states allow for tax credits and deductions within their tax codes. Check with state adoption offices or an accountant for specific information for your state. Visit the Department of Health and Human Services web site for additional information on Adoption by State: http://naic.acf.hhs.gov/parents/prospective/funding/adopt_assistance/

State Adoption Subsidies: Many states subsidize adoptions of special needs children. Each state has a program in place with a specific list of guidelines and qualifications. Visit the North American Council on Adoptable Children for more information specific to your situation: http://www.nacac.org/

Charitable Adoption Specific Loans: A number of charitable organizations offer loan programs specific to adoption.

Some examples are:
Gift of Adoption Fund: The Fund's mission is to provide financial assistance in the form of grants to adoptive parents. http://www.giftofadoption.org

A Child Waits: Providing low interest loans to families who, “have exhausted other financial options and could not proceed with their adoption without our help.” http://www.achildwaits.org/

Please take care to research the legitimacy of any company offering grants or loans prior to providing any paperwork or ‘application fees’.

Adoption Specific Loans from Lending Institutions: Many banks offer load programs that were specifically created for adoption related expenses. Banks such as MBNA, Fifth Third, USBank and the National Bank of Canada have programs relating to adoption.

Traditional Lending Institution Financing: Many prospective parents use equity lines of credit and home equity loans to finance all or part of their adoptions. The interest on many of these loans may also be tax deductible if they qualify.

Gifts: A parent may give up to $11,000 per year as a gift to a child and an additional $11,000 to their spouse per year. Many grandparents get assist in the financing of international adoption this way.

Dependency Exemption: As with a biological child, an adopted child (or one being adopted) may qualify as an exemption on the parents’ taxes. Visit the IRS web site or speak with an accountant for more information. http://www.irs.gov/faqs/faq2-3.html

Employer Benefits: Many companies offer adoption financial aid as part of their benefits package. Check with your employer to see if such a program exists. Visit our section on Employer-Provided Adoption Benefits.

A list of many participating companies can be found at: http://www.adoptionfriendlyworkplace.org/employers.asp

Military Subsidies: The US military has a program providing reimbursement of up to $2000 per child for any adoption. Visit our section on Military Families and Adoption.

Travel Discounts: Many airlines have developed special programs that provide discounts to travelers for adoption related trips.

Northwest Airlines: “Special Delivery”
British Airways