Adopting With A Budget
Adoption can be incredibly expensive, making it a very large, and very serious investment. Many couples and families who want to adopt are aware of the expenses that come with the process, but they aren’t always sure how they’re going to cover the costs.
While there are many options to help finance an adoption, some are as big of a commitment as adoption itself. Fortunately, there are more than just the traditional options for financing an adoption. In fact, there are various avenues to take when looking to cover the cost of your adoption. If you don’t want to use one, there are plenty more to choose from.
First Look: Traditional Financing
For most families, adoption costs are taken care of by searching for loans and grants, employer provided benefits, and even military aid. There are also a number of tax benefits that come with adoption, which helps finance both foster care and adoption for many families.
With these different options, most people think their costs are totally covered, but these are just the tip of the iceberg. For loans and grants, most families would agree they’d rather receive a grant than a loan because this is “free money” they can use to take care of whatever they need. A loan, on the other hand, must be paid back at some point in the future, and it will most likely accrue interest, pushing the family into a financial hole. Employer benefits are helpful as long as the adoptive family member stays with that job, but also various things can come up that cause them to either lose or walk away from the job.
Finally, military benefits are perhaps the most stable of these options, but not all families have this option to choose from. With this in mind, it’s important to know about the other adoption finance options that are readily available for families.
Second Look: Finding Helpful Alternatives to Adoption Financing
If you don’t want to stop at the already mentioned options for adoption financing, there are more ways to cover the cost of welcoming new members to your family. In fact, many states and countries offer plenty of benefits to adoptive families, helping them to financially support their growing family. There are always ways that you can make more money to cover your costs that won’t cause too much strain on your everyday life. For other adoption options, check these out:
- State Adoption Reimbursement Programs: Many states have programs in place that actually reimburse families for “nonrecurring adoption expenses” for foster care children. This means that big, onetime payments are fully refunded to the family, helping them stay afloat on other payments and expenses that go with raising a family and running a home. The reimbursement is given through the state’s courts and State Human Service Departments. To check the policies set in place in your state, go here for more information.
- Agencies with Incremental Payments: Perhaps the overall cost isn’t your problem. Maybe you can pay, but not all at once. There are adoption agencies/professionals that make it possible for you to pay the necessary expenses in increments. This means you have the availability to pay for costs at different stages of the adoption, such as when a family signs on or when a family is selected rather than making a single large payment in full.
- In compliance with the Hope for Children ACT, adoptive families may be entitled to receive a tax credit when adopting children both internationally and domestically. As the adoptive family/parent, you are eligible to collect a one- time tax credit of up to ten thousand dollars after your adoption is complete and finalized. As this is a onetime credit over a five year period from the time the adoption is finalized, the aid is spread out over the coming year. There are some stipulations and restrictions that apply, so check the IRS website to learn more.
Though adoption is expensive, you can find ways to cover the necessary costs. By being creative and exploring your options, you can find ways to finance your adoption.