The costs associated with adoption may seem overwhelming at first. But with the help of the federal adoption tax credit and a variety of other available funding sources, adopting may be more affordable than you think! Below are several funding resources to consider.

Federal Adoption Tax Credit
Internal Revenue Service
800.829.1040
Hours of Operation: Monday – Friday, 7 a.m. – 10 p.m. your local time
www.irs.ustreas.gov

The adoption tax credit offsets qualified adoption expenses, making adoption possible for families who could not otherwise afford it. Taxpayers who adopt an eligible child may qualify for an adoption tax credit. In general, the credit is based on the reasonable and necessary expenses related to a legal adoption, including adoption fees, court costs, attorney’s fees and travel expenses. Income limits and other special rules apply.

Frequently Asked Questions compiled by the Adoption Tax Credit Working Group (January 2013)

Brief Summary:

  • The Adoption Tax Credit has been made permanent.

Adoption Tax Credit Amounts (if Congress makes no changes):

  • 2013:  $12,970
  • 2014:  $13,190
  • 2015:  $13,400
  • 2016:  $13,460
  • 2017:  $13,570
  • Unused credit may be carried forward up to five tax years.

For more information on the tax credit, see Form 8839, Qualified Adoption Expenses (PDF), and the worksheets located in the instructions (PDF), both available at the IRS web site listed above.

For detailed advice regarding the credit, contact a tax advisor.

Links to additional resources:
2013 Policy Priorities and Adoption-Related Legislation (2013) - article in Adoption Advocate, a publication of the National Council for Adoption
Tax Benefits for Adoption: the Adoption Tax Credit (rev. 2011) - article in Adoption Advocate, a publication of the National Council for Adoption
Questions and Answers on Adoption Benefits
Adoption Credit, IRS Tax Topic 607 – information on qualifying expenses paid to adopt

State Tax Credits
Many states also offer adoption tax credits. Visit your state’s web site or contact your tax advisor to find out if a state tax credit may be available to you.

 

Employer Reimbursement
Check with your employer to see if your workplace has an adoption benefit. If they do not, the “Adoption-Friendly Workplace” program listed in the resources below offers information and tools to propose one to your employer. A listing of the best adoption-friendly workplaces is also available on their web site.

Additional Financial Options

A Child Waits Foundation
1136 Barker Road
Pittsfield, MA 01201
Phone: 866-999-2445
 http://www.achildwaits.org/
email: cnelson@achildwaits.org
A non-profit, charitable foundation that provides low interest adoption loans and grants to give financial assistance to families adopting internationally.

AdoptTogether

 

AdoptTogether is a non-profit funding platform helping families raise money to pay for adoption costs, and is the world’s largest crowdfunding platform for adoption. To learn more, click on the link below.

https://www.adopttogether.org/

A Child Waits Foundation
Provides low interest loans for families who have exhausted other financial options and could not proceed with their adoption without this help.

1136 Barker Road
Pittsfield, MA 01201
866.999.2445
cnelson@achildwaits.org
www.achildwaits.org

A Child’s Desire
Offers grants to parents adopting hard to place children, special needs children, and children over the age of eight. Offers adoption grants to nonprofit agencies as well as an adoption fundraising program to adopting families.

1735 1/2 Washington Street
Natchitoches, LA 71457
318.354.1229
grants@achildsdesire.org
www.achildsdesire.org

Bills Tax Service-Adoption Tax Credit Specialist
Bills Tax Service is located in Centralia, IL. They are very passionate about helping as many adoptive families as possible with the Adoption Tax Credit. Click on the link below for more information.

http://centralia-il-taxservice.com/specific-services-we-provide/adoption-tax-services/

Dave Thomas Foundation for Adoption (formely: Adoption Friendly Workplace)
716 Mt. Airyshire Blvd., Ste. 100
Columbus, OH 43235
phone: 1-800-275-3832
email: info@davethomasfoundation.org
https://davethomasfoundation.org/

https://davethomasfoundation.org/2016-adoption-friendly-workplaces
Helps to find loving families for children waiting in foster care.

Gift of Adoption Fund, INC.
2001 Waukegan Road
Techny, IL 60082
phone: 877-905-2367
email: info@giftofadoption.org
http://giftofadoption.org/

God’s Grace Adoption Ministry
P.O. Box 4
Modesto, CA 95353
phone: 209-572-4539
https://ggam.org/
email: info@ggam.org
Seeks to help Christian families overcome the financial burden of adopting children. Works in cooperation with the agency to assist the family with their financial needs; depending on the individual family needs; financial assistance is available in the form of grants and interest free loans.

HelpUsAdopt.org

P.O. Box 787
New York, NY 10150
phone: 1-917-684-5484
email: info@helpusadopt.org
http://www.helpusadopt.org/
A national non-profit 501(c)3 financial assistance grant program that provides qualified couples and individuals (regardless of race, religion, marital status or sexual preference) with grants up to $15,000.

Hebrew Free Loan
131 Steuart Street, Ste. 520
San Francisco, CA 94105
phone: 415-546-9902
email: info@hflasf.org
Provides interest free loans up to $10,000 for adopting families in Northern California.

His Kids Too!
219 B. Delta Court
Tallahassee, FL  32303
phone: 1-850-524-5437
email: director@hiskidstoo.org
http://www.hiskidstoo.org
His Kids Too! is a 501(c)3 charity that has a wonderful grant program designed so that your friends and family can assist you financially with adoption costs. Donors make tax deductible donations to His Kids Too!, and adoptive families apply for a grant from the funds generated by donors. This is beneficial so that you are in control of your fundraising efforts and donors will have complete confidence that donations will go directly towards adoption expenses.

Home for Good Foundation
14175 W. Indian School Rd.
Ste. B-4 #147
Goodyear, AZ 85395
phone: 541-479-5926

http://www.hfgf.org

Home for Good is involved in the ongoing work of planting adoption ministries in churches around the world. These ministries are created to support families who would like to adopt but are burdened by the cost.

Involved in the ongoing work of planning adoption ministries in churches around the world. A non-profit 501(c)3 organization.

International Adoption Resources

Download application for funding on website
http://www.theiar.org
Provides grants for international adoptions ranging from $500-$1500 as funds are available.

Lifesong for Orphans

To help families bridge the financial barrier of adoption, Lifesong for Orphans offers adoption grants, interest-free loans & fundraising support.  With the commitment of our 100% pledge, any donations made on behalf of adoption families will go straight towards adoption expenses (no administrative fee deducted).

P.O. Box 40
Gridley, IL 61744
phone: 309-747-4527
email: info@lifesongfororphans.org
 http://www.lifesongfororphans.org/adoption-funding/adoption-grants

North American Council on Adoptable Children
970 Raymond Avenue, Ste. 106
St. Paul, MN. 55114
phone: 651-644-3036
http://www.nacac.org/adoptionsubsidy
email: info@nacac.org
Provides assistance to figure out tax credit & subsides but does not provide loans or grants.

Prosper

 

The National Adoption Foundation has partnered with Prosper.com to provide adoptive families with adoption loans to receive the financing they need. Prosper is America’s first peer-to-peer lending marketplace that has over 1,480,000 members. They connect people looking to borrow money with people who have money to invest.

www.fundyouradoption.org/adoption-loans/

Saving Children, Building Families
The Saving Children, Building Families Foundation believes that every child deserves a home. Their goal is to direct the limited funds available to where it will do the most good based on the available information. They prefer to fund international adoptions.

www.savingchildren.net/

Show Hope

 

Awards financial adoption grants to qualified families already in the process of adopting. The size of the grant awarded is determined by several factors, the most important being need.

PO Box 647
Franklin, TN 37065
Phone: 615.550.5600

contact@showhope.org
www.showhope.org

The ABBA Fund
P.O. Box 868049
Plano, TX 75086
888-775-3422
http://www.abbafund.org
Provide interest free loans to parents who believe that God is calling them to grow their families through adoption.