If you are new to the topic of adoption or are currently in the beginning stages of your adoption process, a question that has most likely crossed your mind is, “Why is the adoption process so expensive?” If there are millions of waiting children in the world, why must it often cost tens of thousands of dollars to help bring them into the love and protection of a family?
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.
Medical Expenses: Prospective adoptive parents are not obligated to pay birth parent medical expenses, however, they agency may coordinate with the prospective adoptive parents as a matter of charity to pay actual medical expenses related to pregnancy, including prenatal care, maternity care, medical, physician, delivery, hospital, lab and other medical services. The amount paid depends on the needs of the birth parents and available insurance coverage and governmental funding.
One of the first questions asked when considering adoption is “How much does adoption cost?” Unfortunately there is no a simple answer. Every adoption is unique and fees vary based upon the type of adoption you choose to pursue. Public agencies also known as State agencies locate and prepare adoptive families to adopt children from foster care. These adoption matches are typically arranged by the agency and the placement committee and are based on the needs of the child and the ability of the family to meet the needs of the child or children. The cost of adoption through a public agency is usually minimal and are paid for through tax dollars.
These are a central factor to the question, “Why does adoption cost so much money?” Variable adoption costs are comprised of expenses that can change in each unique adoption situation. Typically, these are fees paid toward needs of the prospective birth mother. The amount of variable adoption costs incurred in a given adoption situation will be dependent on the birth mother’s unique needs, as well as what is allowed by the adoption laws in her state. Some of these costs can be things like:
Breed. Purebred cats, such as the Siamese, have somewhat predictable cat characteristics based on their breed. For example, you can be certain that a Siamese will be loud and vocal, just as you can be certain that a Maine Coon will be friendly and affectionate. Before you visit the shelter, it's a good idea to research different cat breeds and their temperaments.
3. You may not have a baby shower until months after your baby is born. Since the adoption process is often filled with so much uncertainty, many prospective parents prefer to wait until after their baby is home before having a shower. Often, this is a practical course of action. For instance, if a family is adopting from overseas, they may not know their child's gender, size, or age until shortly before traveling to get him. (In some cases, their "baby" may be 15 or 16 months old!) However, once parents are home and settled into a routine, they'll have a better sense of what they need -- and of their baby's likes and dislikes.
If your state does allow private adoptions, where the birth mother and prospective adoptive parents find each other, there will still be some fees associated with the adoption. These fees may include advertising online to locate a birth mother. Again, this is not allowed in every state. As indicated above, if your state requires you to utilize an adoption agency, they may charge a lesser fee than if they facilitated the match between birth mother and adoptive parents. You may also want to consult an attorney if you are pursuing a private adoption. Not only will you know what your rights are regarding the adoption process but it also might give you peace of mind as well. In some states you can use an adoption attorney to facilitate the adoption process and will pay whatever they charge and whatever their hourly rate is. Again, this is not one size fits all either. Make sure you consult with more than one adoption attorney before choosing the one that fits your family’s need the best.
Private domestic adoption costs vary from adoption to adoption and state to state. An agency fee ranges from $15,000 – 30,000. Additional costs for birth parent expenses (i.e. medical, rent, living expenses, phone, etc.) are set on a case-by-case basis. The adopting parent(s) pays for the Adoption Home Study and Post Placement Supervisory Visits, travel, as well as legal counsel for themselves and the birth parent(s). Private placement adoption costs are between $25,000 – 50,000.
Coat color. Regardless of hair length, cats shed. If you're someone who has a pristine white or light-colored living room and wish to keep it that way, you probably wouldn't be happy with a dark-colored cat. Similarly, if your wardrobe includes a lot of black or navy and you plan to cuddle your kitty, you should probably skip a white or light-colored cat.
Breaking down all the costs really answers the question of “Why is adoption so expensive,” and it gives you a greater picture of how quickly and enormously costs can add up. In a hypothetical domestic adoption situation, the fees could reach over $20,000 quite quickly. If a home study process costs prospective adoptive parents $3,000, and the application fee for the agency is $500, that is already quite a large amount right out of the gate. Also, there is a match fee of $1,000 as the prospective adoptive parents have not self-matched. The birth mother expenses may easily reach $5,000, and hiring outside legal counsel for her could equal that amount. If the prospective adoptive parents live in Florida, but the child is being born in Ohio, they will need to account for travel, lodging, and food. After airfare, food, and lodging for the four weeks of their ICPC stay, they have easily spent $6,000. They also have paid for counseling for the birth mother at the cost of $1,500 and their post-placement visits of $1,250. While each fee seems small on its own, these adoptive parents have reached finalization at a final cost of $23,500. This figure being only hypothetical and does not account for unexpected expenses or the possibility of financial loss with a failed adoption.