One of the largest sources of funds for adoption is the Federal Hope for Children Act which provides an adoption tax credit. As of the year 2004, adoptive parents may be eligible for a tax credit up to $10,390 per adoptive child. Check with your tax professional to see if this applies to you or your family.
In addition to the tax credit for adoptive children, you may also be eligible for the federal child tax credit. This is a credit of $1,000 for each child that qualifies under the age of 17. The child must be your dependent and must be a U.S. citizen.
Most states offer some type of tax relief including tax credits, exemptions, or deductions. Check with your state's Department of Revenue or your tax professional for specific information on individual rules and requirements for each state.
Adoption assistance or subsidies are payments made by a state or federal government to parents who adopt a special needs child. Check the website to see if your child qualifies.
This program is available for reimbursement of adoption expenses for members of the military. You need to be on active duty and may be of any branch of the U.S. armed forces or Coast Guard.
Many employers offer adoption benefits in several forms which may include reimbursement of adoption expenses, paid adoption leave and access to adoption resources. The Dave Thomas Foundation puts this list out every year.
Adoptive parents may consider putting adoption costs on a credit card. People considering this should compare cards carefully. This website allows you to compare credit card rates, terms, and offers online.
