Birth Mother expenses also widely vary depending on a specific Birth Mother’s needs and what is allowed by state law. Most Birth Mothers are in a situation where they will need some financial assistance from the Adopting Parents. In most states, Adopting Parents can expect to pay a Birth Mother’s reasonable medical, living, legal and counseling expenses.
Adopting Parents pursuing private US newborn adoptions are warned of the possibilities of an adoption opportunity disrupting. This is a heartbreaking event and for Adopting Parents an adoption disruption can leave them in a situation where they have paid for a Birth Mother’s expenses and are now unable to complete the adoption. Financially, this can be further devastating if they now find themselves unable to move forward with another adoption opportunity because of their inability to pay for additional Birth Mother expenses.
This is a tax credit offered to adoptive parents to encourage their adoption. The United States International Revenue code offers a credit for “qualified adoption expenses” paid or incurred by individual taxpayers. The credit apply’s for all types of adoption except step-parent adoption and is available in the year the adoption is finalized. In 2017, the maximum adoption tax credit was $13,570 per child. The amount changes year over year due to inflation. Talk with your tax adviser to understand more about the Adoption Tax Credit and how it can work for you. The Adoption Tax Credit is not refundable, but it does provide financial assistance to many families each year.