Some types of adoption come with relatively modest costs, but others can present a financial challenge to many families. Most step parent adoptions and parental placement adoptions are usually considered to be affordable by today’s standards and, if requested, most adoption attorneys will usually be willing to work out a reasonable payment plan. But agency adoptions, international adoptions and contested adoptions can be significantly more expensive.
Congress has helped keep adoptions affordable by continuing to keep in effect the Adoption Tax Credit, which in 2013 was $12,970.00. Because this is a credit instead of a deduction, it goes a long way towards making adoption more affordable.
In addition to the federal tax credit, many states also offer tax credits. And many employers will provide full or partial reimbursement of adoption expenses to their employees.
Federal law also authorizes reimbursement of adoption expenses of $2,000.00 per child, not to exceed $5,000.00 per year, to members of the armed forces. Service members must be serving on continuous active duty for at least 180 days, and the adoption must be finalized while on active duty, or within one year thereafter.
There are also many private organizations which exist for the sole purpose of helping families afford the cost of adoption, either by grants or by low cost loans. Many of these have special requirements, or are interested in supporting particular types of adoption, so interested persons are encouraged to spend the time necessary to review the policies of each organization.
Resources4Adoption provides information on various sources of grants and loans at www.resources4adoption.com.
It is very unfortunate when families who desire to adopt do not pursue their options because of the belief that they cannot afford to adopt. Usually there are different methods available to help manage and reduce costs. Prospective adoptive families are encouraged to do some research and to ask as many questions as necessary in order to find the way which works best for them.
If you have additional questions related to the costs of adoption in Virginia, please contact me for a complimentary consultation at our office, or email me at [email protected]