If you adopt a child from foster care, you're eligible for a monthly government subsidy — an average of $846 a month, according to Adoptive Families. There is also sometimes a one-time reimbursement available, which ranges from $400-$2,000 depending on the state, as well as health coverage through Medicaid, and sometimes college tuition. Also, if you adopt a child with special needs through an agency, some agencies will waive their fees. (In the context of foster care, "special needs" refers not only to medical conditions and/or disabilities, but also to children who are older, not white, part of a sibling group, or some other combination of factors that have made them "difficult to place" for adoption. Each state defines "special needs" differently.)
– Legal Fees – Even if you are working with an agency, you will be required to pay legal fees or attorney fees. Again, make sure you know what your agency expects you to pay out of pocket ahead of time. We, too, had to hire an attorney for our adoption (our agency uses the same one every time) and paid an additional approximately $3,000 for attorney’s fees. There are also filing fees associated with adoptions. Again, make sure you know if you have to pay these out of pocket or if they are included in the agency fee.
The first expense related to adoption is the fees associated with becoming eligible to adopt a child. The majority of the answers to the question, “Why is adoption so expensive?” will be answered with this eligibility process. To become eligible to adopt, most prospective adoptive parents will need to hire an adoption agency or adoption attorney to guide them through the adoption process. To begin the journey with one of these adoption professionals, many will require some sort of retainer or application fee. This fee can vary tremendously, but as an example, one attorney quoted a $700 retainer fee upfront to be hired for an adoption process. One of the agencies my husband and I looked into required a $300 application fee to being the process with their adoption agency.
And it's not because there are fewer children up for adoption. In 2013, there were 7,092 worldwide adoptions. "The 2014 numbers arent out yet," international adoption attorney and director of outreach and advocacy for Both Ends Burning Kelly Dempsey told BuzzFeed Life. "But I anticipate lower numbers for this past year—maybe around 5,000 successful adoptions."
An agency adoption is an adoption that occurs through a licensed child-placing agency. The agency will facilitate the adoption process and can possibly be advocating for the birth mother and the adoptive family. This is the type of adoption we utilized with the adoption of our son. Our social worker advocated for our son’s birth mom and prepared us for the adoption process.
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.