It’s true that adoption is expensive, but there are many ways to ease the financial burden. Adoptions are an emotional journey as it is. With respect to finances, you will probably have questions at the beginning of your journey such as:
We strive to relieve any unnecessary burdens and have simplified the financial process by making our fees more predictable. At Open Arms we are transparent about the fees we charge. You will know what the total fee will be and when each payment is due. We limit the variable expenses as much as possible.
There are many moving parts and people involved in every adoption. We must follow state regulations, have relationships with legal and medical professionals, and network with contacts to identify and assist biological mothers. During the adoption process we are in constant contact with the loving mother, the biological father, other family members, case workers, and medical professionals. We orchestrate calmness during the pregnancy in order to best unite you with your future child.
Because there are many ways to orchestrate, different agencies have varying fees. Unless you are working directly with an attorney towards an independent adoption, an agency is required. The fee you are then quoted depends on what services they will offer you. Most will have their fee broken down by each service they provide and often an hourly fee, which is difficult to predict at the start.
At Open Arms we work with fixed fees, with no additional hourly charge. This allows you to easily track and budget for your adoption. If you are financing all or a portion of your adoption, banks are more welcoming of a fixed fee arrangement!
As each adoption is different, these costs vary depending on the biological mother, are the reason that you will usually be quoted a “range” in your total adoption fees.
Her medical expenses (insurance and check-ups and delivery) may be covered by a range of sources such as her parents, insurance, or government assistance. Anything medical expenses that are not covered by insurance are usually paid by the adopting couple.
Her basic living expenses (rent, supplies, food) can be paid for by the agency, her or her parents, or by the adoption couple. Each state has rules as to what is permissible. Lastly, legal services such as obtaining legal consent and termination of the birth parents rights are paid for by the adoptive couple.
No, fees can range from $30,000 to $80,000 depending on the agency you work with. The combination of fixed fees for services, variable expenses, and hourly expenses makes the total cost unpredictable. At Open Arms we believe the fee structure should be less of a worry for you.
Each factor can influence typical adoption costs. Generally, for families adopting a baby through a private agency, the average cost of adoption in the U.S., according to a report from Adoptive Families Magazine, is $43,000.
1. Employee Benefit Programs. Many employers offer financial assistance and time off for adopting parents. Our first recommendation is that you check with your human resources department to verify what your company offers.
2. Adoption Grants. Adoption grants are very popular because unlike adoption loans, grants do not need to be paid back. These are wonderful non-profit agencies that offer grant opportunities to adoptive families:
3. Bank financing. Here are some banking institutions that offer loans for all or a portion of your adoption costs.
i. America’s Christian Credit Union
Loans up to $50k – Simple application process – Up to 7 year repayment plans
Loans up to $100k – Easy online application – Up to 7 year repayment terms
Loans up to $35k – Funds available within one business day – Poor credit considered https://avant.com
4. Tax Credit. Everyone going through the adoption process qualifies for the Federal Adoption Credit of $14,080. The best part of this credit is that it is not a deduction but an actual tax REFUND that is based on a dollar for dollar reduction of your tax liability! This money will offset your adoption costs significantly. The federal government is basically giving you back roughly 35%of your adoption cost. Form 8839 “Qualified Adoption Expenses” must be completed and attach the form to your Form 1040.
5. Child Tax Credit. The Child Tax Credit has just been increased from $1000 to $2000 as long as the adoption is closed by December 31styou are eligible for the full credit.
6. State Tax Credit. Most states also reimburse in the form of an Adoption Credit. California for example gives $3,000 back after the adoption is closed.