We believe that all loving and caring families should be able to open their homes to a waiting child and we are happy to provide information about financing adoption.
We hope this information will help your family to adopt a child.
THE NATIONAL ADOPTION FOUNDATION
Most experts agree that one of the principal barriers to adoption is economic. And while many people have expressed concerns that adoption is too expensive, the National Adoption Foundation has done something about it. Using private funds and a partnership with the corporate community, The Foundation has already helped to create homes for countless children.
For more information visit:
www.nafadopt.org/NAFPrograms.htm
FEDERAL EMPLOYEES ADOPTION BENEFITS
Adoption can be a challenging and rewarding experience and the Federal Government provides a number of work/life programs and benefits which can ease the adoption process for Federal employees.
For more information visit:
www.opm.gov/wrkfam/html/adoption.asp
ADOPTION TAX CREDIT
Please contact your tax advisor or IRS customer service for more information about Federal Tax Benefits for adoption (For 2004, the maximum credit increased to $10,390), State Tax Credit and Dependency exceptions.
For more information visit: www.irs.gov
and read 968 Publication www.irs.gov/pub/irs-pdf/p968.pdf
EMPLOYER (Adoption Assistance Program)
There are many corporations that have adoption assistance programs (AAPs). Check with your employer's human resource department to see if they have an AAP or other adoption assistance benefits.
MILITARY ADOPTION
The military will reimburse active-duty personnel for most one-time adoption costs up to $2,000 per child, whether adopting a healthy infant, a waiting child, or a child from abroad. Travel costs, foreign or domestic, are not covered. There is a maximum of $5,000 in a given year, even if both parents are in the military. Reimbursement is made only after the adoption is finalized and only if the adoption was done through a state adoption agency or a non-profit private agency.
The benefits cover:
- Fees that can be reimbursed include adoption fees;
- Placement fees, including fees for birth parent counseling;
- Legal fees and court costs;
For more information visit:
http://www.militaryadoption.com/
REIMBURSEMENT OF NON-RECURRING EXPENSES
A one-time federal adoption program, administered by the states, and includes foreign-born children adopted by U.S. Citizens. Reimbursement for non-recurring adoption expenses (agency fees, legal costs, and transportation) is available through each State for families who adopt children with special needs (children from minority cultures) up to $2,000. The benefit differs by State.
LOANS / SECOND MORTGAGE
Another alternative to consider is a home equity loan. These are typically low interest loans that come with a checkbook you can use to write checks to pay your bills. The biggest advantage here is that interest from a home equity loan may be tax deductible. However, some financial advisors recommend using credit cards instead of home equity loans since credit cards are unsecured debt. If you get in trouble paying off a home equity loan, you could lose your house.
401K PLAN
Before you take a loan out from someone else, consider borrowing from yourself. Many company 401k plans allow employees to borrow up to 50 percent of their current 401k balance. The big advantage of this is that you are paying yourself interest. The downside is that if you change companies, you will be expected to pay off the loan or take the 10 percent tax penalty on the loan amount as an early withdrawal.
LOW INTEREST CREDIT CARDS
Some agencies will encourage you to take out a new low-interest credit card to pay adoption related bills. Then you can pay off the credit card with your tax credit before the rate goes up. For domestic adoptions, this may work well; however, given the potentially long timeline of an international adoption, you may end up paying higher interest long before the tax credit comes back.
Please do not hesitate to contact us
by email info@lovingstork.org
or by phone 1-877-244-9595 with any question you may have during the adoption process.
We are here to answer on any questions to any family who are thinking to adopt a child or who are already in the process.
