Steffas & Associates, P.C.

Financial Assistance and Tax Credit

Important: The following information is not an exhaustive lists of financial assistance available to you and is meant to encourage you to do more research on on the topic. The information displayed on this page was last updated on September 2007.

Here are some suggestions on where to start looking for financial assistance:

1. Federal tax credit or exclusion
In 2006: $10,960 per adoption.
The adoption credit is an amount subtracted from your tax liability. Although the credit generally is allowed for the year following the year in which the expenses are paid, a taxpayer who paid qualifying expenses in the current year for an adoption which became final in the current year, may be eligible to claim the credit on the current year return.
Qualifying expenses include reasonable and necessary adoption fees, court costs, attorney fees, traveling expenses (including amounts spent for meals and lodging while away from home), and other expenses directly related to and for which the principal purpose is the legal adoption of an eligible child.
To apply for the federal tax credit or exclusion you will need to complete Form 8839 and attach it to Form 1040 or 1040A and report the credit on line 52 of Form 1040 or line 34 of Form 1040A. Be sure to consult a tax advisor before. More information is avalable from the IRS at www.irs.gov

2. State tax credit
Many states provide reimbursement of a certain amount of non-recurring adoption expenses. You should inquire with your state tax office to learn more about the eligibility requirements and how to apply for the tax credit., or consult with a tax advisor.

3. Employee benefits
In 2004, 39% of employers offered adoption related benefits to their employees.
Many employers provide a range of benefits for families who adopt, including paid or unpaid leave when a child arrives in the home, reimbursement of some portion of adoption expenses, or assistance with adoption services.
The Dave Thomas Foundation recently published a list of the 100 best adoption workplaces in 2007. The list is available at
www.davethomasfoundation.org

4. Subsidies for special needs children
Children with special needs may qualify for special subsides. For more information, please visit the North American Council on Adoptable Children's website ww.nacac.org

In 2007, in Georgia, a family is eligible for subsidies if the family has adopted a child
- of 8 years of age or older,
- of Black heritage and 1 year of age or older,
- is the members of a sibling group of three or more,
- if the members of a sibling group of 2 where one is over the age of 8 or has another special need, or
- any child with documented physical, emotional, or mental problems or limitations.

The rates are dependent on the child’s particular needs with a maximum of $433.43.

More information is available from the North American Council on Adoptable Children at www.nacac.org/adoptionsubsidy/stateprofiles.html

5. Subsidies for military families
Active-duty personnel are reimbursed for one-time adoption costs, whether adopting an infant, a waiting child, or a child from a foreign country. To learn more visit http://www.childwelfare.gov/pubs/militarybulletin.cfm.
A new guide, Wherever My Family Is: That's Home! Adoption Services for Military Families, explains how to minimize obstacles to adoption, with information about the homestudy process and post-adoption services. Request a copy by calling 888-200-4005, or download it from www.adoptuskids.org/images/resourcecenter/militaryguide.pdf.

6. Loans and grants
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. The Gift of Adoption Fund: www.giftofadoption.org, and A Child Waits, www.achildwaits.org, offer grants and loans for families adopting internationally.

7. Donations from religious organizations and other communities
The church or other communities that you belong to may be willing to help offset some of the expenses linked to your adoption. Inquire with other members to learn about the existence of such a program or consider starting your own fund raising campaign.

8. Discounted airfares
Some airlines offer discounts on certain seats or may waive penalties for itinerary changes or cancellations. However, make sure to look around and compare airfares as the discount for adoptive parents may not match some better last minute deals or other reduced rates.
In order to book your flight you will need to provide the contact information of your adoption agency as well as your proof of U.S. residency.
Delta and Northwest are two of the main airlines offering some discounted airfares to adoptive parents. Inquire directly with the airline's reservation agent.