Cost of Adoption
How much did adoptions cost in 2006 and 2007? More than 1,500 Adoptive Families readers completed a survey on the cost of adoption. Here's a breakdown of the total cost of adoption, before adoption-related employee benefits or tax credits:
- Domestic adoptions, on average, cost less than international adoptions.
- For most adopters, the average "cost" of an adoption was about $20,000-$25,000.
Domestic adoption - 38 percent of domestic adoptive parents had a false start, or worked with one or more birthmothers before a match that succeeded. Of those, 75 percent say unsuccessful attempts cost the family less than $5,000.
International adoption - 14 percent of international adoptive parents had one or more unsuccessful attempts, which might include switching countries or declining a referral. Of those, 51 percent say unsuccessful attempts cost less than $5,000.
One reader wrote: "When we adopted our son from the foster care system, we were reimbursed for every penny we spent. We paid no attorney fees, court costs, travel expenses. After everything was finalized, we had everything covered and we had a beautiful child added to our family."
Another said: "We adopted a newborn baby girl locally (within our own state) and were able to be present for the birth and even stay overnight at the hospital with her in a room. We spent about $10,000 total. Our wait time was exceptionally short as we were matched with the birth mom right after we completed our home study."
Affording adoption travel
Travel costs push up the totals for international adoptions. Russia and Guatemala rank as the most expensive countries for overseas adoption.
Readers share tips for saving on travel, which is often the biggest adoption expense, at adoptivefamilies.com/travel. One suggestion: Ask airlines and hotels about discounts. "When booking our flight, we told the ticket agent that we would be flying back with a baby we were adopting, and got half off the ticket for our daughter," wrote one woman. "I explained to a hotel manager that we had to stay until the state released us to take our daughter home, and this could be 10 days or more. They discounted our room for the entire stay."
Getting Help With Expenses
Credits, reimbursements, and other benefits can make your adoption affordable. Here are some of them:
Federal Adoption Expense Tax Credit - For tax year 2007, the federal adoption expense tax credit was a maximum of $11,390 per adoption (subject to income limitations). Log on to www.irs.gov/pub/irs-pdf/i8839.pdf for details, worksheets, and instructions. See also form IRS Form 8839, "Qualified Adoption Expenses."
State Tax Credits - Several states have tax credits for adoptive families, sometimes restricted to those adopting from that state's public child welfare system. Contact your state adoption unit for more information.
Adoption Subsidies - Children with special needs may qualify for a subsidy to help parents pay for ongoing treatments. For more information: North American Council on Adoptable Children (nacac.org/adoptionsubsidy/adoptionsubsidy.html)
Nonrecurring Adoption Expense Reimbursement - Families who adopt from the public system may be eligible for reimbursement of adoption-related expenses, such as home study, travel, and attorney costs. More information: nacac.org/adoptionsubsidy/stateprofiles.html.
Employee Benefits - More employers are offering adoption benefits for employees, and the dollar amounts of these benefits are growing, with the average expense reimbursement now approaching $4,000. See Adoptive Families' picks for adoption-friendly companies and read, "How to Lobby Your Employer for Adoption Benefits," at adoptivefamilies.com/topcompanies. For more help in lobbying for these benefits, visit adoptionfriendlyworkplace.org.
Grants and Loans - Some adoption agencies and organizations offer adoption grants and/or low-cost loans. Agencies with such programs include Holt International, World Association for Children and Parents (WACAP), and Dillon International. For instance, the Gift of Adoption Fund (giftofadoption.org), and A Child Waits (achildwaits.org) offers grants and loans for families adopting internationally. Helpusadopt.org, a startup financial assistance grant program, awards grants twice per year to prospective adopters who face significant financial obstacles.
Other Resources - Some people look into cash advances from credit cards, second mortgages, home equity loans, and special adoption loans. Maybe you can identify a birth mother who already has medical insurance. Read tips from parents about the ways they financed adoption, and check out the booklet, "How to Make Adoption an Affordable Option," available from the National Endowment for Financial Education (nefe.org/adoption), or by calling 888-878-3256 (item #508-F). Also see the Burke Family's list of adoption funding sources at angelfire.com/journal/adoptionhelp/adopthelp.html.
