There are several sources of financial help available to those who adopt children from foster care. Financial help is more limited for other types of adoption. A number of financial assistance resources are outlined below.
Most, though not all, of the children in the foster care system are eligible for benefits under this program. Other government assistance (i.e., state-funded adoption assistance) may be available for children in the foster care system who do not qualify for Title IV-E benefits.
A one-time reimbursement of non-recurring expenses for the adoption of children in foster care who meet the state’s eligibility criteria may be available. In cases where siblings are placed and adopted, either separately or together, each child is treated as an individual and reimbursement of non-recurring expenses is allowable for each child, up to the state’s maximum amount. Qualifying expenses may include costs to have the family assessment (home study) completed, costs for undergoing physical health and psychological examinations, court fees, and attorney fees. Reasonable costs for transportation, food, and lodging for the child and/or the adoptive parent(s), when necessary to complete the placement or adoption process, may also be included.
For an adoptive family to be eligible for reimbursement, the state must have determined that:
There are several rules which govern adoption assistance / subsidy agreements.
Since 2003, families who adopted a child with special needs from foster care could claim a federal adoption tax credit. Children who receive adoption assistance/subsidy benefits are considered children with special needs.
For adoptions finalized in 2020, there is a federal adoption tax credit of up to $14,300 per child. The 2020 adoption tax credit is not refundable, which means taxpayers can only use the credit if they have a federal income tax liability. The credit applies one time for each adopted child and should be claimed when taxpayers file taxes for 2020. For more information about the adoption tax credit, visit the IRS website.
Check with your employer to see what benefits they offer for adoptive families.
Explore the National Military Family Association’s website to learn about the benefits and supports available to military families who adopt.
Various foundations establish grants to help defray the cost of adoption. You can also talk to your banker or credit union about loan options. Visit the National Adoption Foundation’s website for information about their grants and loans.
Lastly, a good place to read and learn about the costs of all types of adoption and resources available to support these expenses is Planning for Adoption: Knowing the Costs and Resources.
AdoptUSKids provides the following services:
The Dave Thomas Foundation for Adoption is focused exclusively on foster care adoption. The Foundation works closely with child welfare advocates and policymakers, provides free resources about foster care adoption and raises awareness through social media campaigns, public service announcements and events.
Child Welfare Information Gateway promotes the safety, permanency, and well-being of children, youth, and families by connecting child welfare, adoption, and related professionals as well as the public to information, resources, and tools covering topics on child welfare, child abuse and neglect, out-of-home care, adoption, and more.
The Academy of Adoption and Assisted Reproduction Attorneys (AAAA) is an organization of nearly 500 highly vetted attorneys dedicated to the competent and ethical practice of adoption and assisted reproduction law. This site includes reform of adoption laws and dissemination of information on adoption ethics.
The North American Council on Adoptable Children (NACAC) works to ensure all children in foster care have permanent, loving families and adoptive families have the support they need. Highlights of this site include adoptive parent support groups, adoption subsidy information, and information about the federal adoption tax credit.
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