Resources for financing adoption

Resources for Financing Adoption

 

The cost of adoption is often a major obstacle to families choosing to build their families through adoption. Any Indiana adoptive parents eligible for the federal tax credit would also be eligible for the proposed state credit 

Agency fees and adoption costs are broken down and staggered over the course of the adoption process.  We’ve compiled a list of the various options of financial support and resources available to make your adoption journey affordable and possible.   The Indiana adoption tax credit is a valuable benefit to adoptive families and can help ease the financial burden adoptive families undertake to provide loving, permanent families for children in need.

 

Adoption Tax Credit*

A tax credit, which can be claimed for eligible adoption-related expenses. 

• Federal Adoption Tax Credit (IRS):  

      Topic No. 607 Adoption Credit and Adoption Assistance Programs | Internal Revenue Service 

      Adoption Taxpayer Identification Number 
      Answers common questions about the adoption taxpayer identification number, the

      temporary number assigned by the

      Internal Revenue Service to a child pending finalization of his or her adoption.  

• Federal Adoption Tax Credit (Articles):  

     Adoption Tax Credit FAQs (nacac.org) North American Council on Adoptable Children:

     Adoption Tax Credit(  North American Council on Adoptable Children
     Provides Federal tax credit information for parents adopting a child with special needs.

     How the Federal Adoption Tax Credit Works | The Motley Fool The Motley Fool

     Adoption Tax Credit 2021 | Beresford Booth PLLC (beresfordlaw.com) Beresford Booth PLLC

     Adoption Tax Credit- Adoption Learning Partners
     Offers an online course to help adoptive families determine their eligibility for the adoption tax

     credit, understand how the tax credit works, create a system for tracking and documenting

     expenses, and prepare for filing taxes.

• Indiana Adoption Tax Credit:  

     Senate Bill 289 - Exemption and adoption tax credit - Indiana General Assembly, 2018 Session

     

    *(Consult with your tax professional when using these tax credits)

 

Employee Benefits

Many employers offer adoption benefit plans, which are company-sponsored programs that financially assist or reimburse employees for adoption-related expenses. Be sure to check with your employers’ human resources department.  

 

Fundraising Opportunities: 

Link to our Pinterest page for creative fundraising ideas for adoptive families

https://www.pinterest.com/secadoption/adoption-fundraising-ideas/

 

Personal Savings and Bank Loans

• Home Equity Loan
• Equity Line of Credit with the interest qualifying for tax deduction
• Adoption Loan Programs at Credit Unions
• Borrow from the cash value of your life insurance policy
• Borrow from your 401(k) account and repay the principle and interest

 

Grants and Loans

• Adopttogether.org
  Connects prospective adoptive families to available grants based on adoption status, actual adoption expenses, and donor designations.
• A Child Waits Foundation
  Provides resources for families seeking grants and loans for international adoptions.
• Gift of Adoption Fund
  Provides grants to adoptive parents.
• Help Us Adopt
  Awards grants to qualified prospective adoptive parents.
• National Adoption Foundation
  Offers financial assistance, services, and support for families before, during, and after adoptions are finalized.

 

Adoption Assistance for Military Families

• Child welfare Information Gateway https://www.childwelfare.gov/pubPDFs/f_militia.pdf

 

Financial Planning

Adopting a child: Financial Considerations | United Way Worldwide

 

Related Websites

• Adoption Financial Resources - National Council For Adoption (adoptioncouncil.org)
  National Council for Adoption
  Includes information on a broad range of resources available to prospective adoptive parents.
• https://adoption.com/
• https://adopting.org/category/financial/
• Site Index Search | Internal Revenue Service (irs.gov)
• https://www.childwelfare.gov/topics/management/funding/program-areas/adoption/
• https://brightfuturesadoption.org/hoping-to-adopt/infant-adoption/adoption-financial-assistance/