There are many moving parts and people involved in every adoption. We must follow state regulations, have relationships with legal professionals, network with contacts to identify and assist biological mothers. During the adoption process we are in constant contact with the loving mother, her parents, the biological father, 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 (high hourly fee) 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 then an hourly fee on top of those, which is difficult to predict at the start.
Fixed fees are easier to understand, track and budget for. If you are financing all or a portion of your adoption, your bank will better welcome a fixed fee arrangement!
No, fees range from $30,000 to $80,000. There are so many variable expenses and combinations of small fixed fee services plus hourly charges that the total cost is unpredictable. At Open Arms we believe the fee structure should be less of a worry for you. The risk to you of the overall cost getting too high – open-ended fee arrangement – needs to be removed.
And lastly, legal services such as obtaining legal consent to perform the adoption and the termination of parental rights by the mother and father both have to be paid by the adopting couple.
Each of these factors 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. While costs vary on an individual basis, families typically spend in this range on the adoption process.
1. Employee Benefit Programs. Many employers offer financial assistance and time off for adopting parents – normally $2,000-10,000. Our first recommendation is that you check with your human resources department to verify what your company offers.
2. Adoption Grants. The benefit of receiving an adoption Grant is that it is “free” money that does not need to be paid back. These are wonderful non-profit agencies and not government related:
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.