Costs of Adopting a Child, Part 2

by Child Welfare Information Gateway

(Page 2 of 2)

Licensed private agency adoption costs: $5,000 to $40,000. Costs for this type of adoption include a fee charged by the agency and may include the cost of the home study, birth parent counseling, adoptive parent preparation and training, and social work services involved in matching a child to a prospective family. The fees charged by licensed agencies are generally predictable, and some even have sliding fee scales based on family income. In addition, some agencies may offer reduced fees to prospective parents who locate a birth parent on their own but who need the agency for counseling, facilitation, home study, and supervision services.

Independent adoption costs: $8,000 to $40,000 (average is $10,000-$15,000). Independent adoptions handled by an attorney generally result in costs that may include medical expenses for the birth mother (as allowed by law), as well as separate legal fees for representing adoptive and birth parents, and any allowable fees for advertising. Additional medical expenses may be required in situations in which there are birth complications.

State laws restrict many of these costs, including any reimbursements to the birth mother. Restrictions may also exist regarding advertisements seeking expectant parents. Where allowed, such advertising expenses may range from $500 to $5,000.

Compared to licensed agency adoptions, the costs of independent adoptions may be less predictable. In addition, costs may not be reimbursable in cases in which a birth mother changes her mind and chooses to parent her child.

Facilitated/unlicensed agency adoption costs: $5,000 to $40,000. These costs are generally the same as costs of licensed agencies. However, in States that allow adoptive placements by facilitators these placements are largely unregulated. Prospective parents may have no recourse if the adoption does not proceed as expected.

Intercountry adoption costs: $7,000 to $30,000. Agencies that provide intercountry adoption services charge fees that range from $7,000 to $30,000. These fees generally include dossier and immigration processing and court costs. In some cases, they may include a required donation to the foreign orphanage or agency. Overall costs may be affected by the type of entity in the foreign country that is responsible for placing the child (e.g., government agency, government orphanage, charitable foundation, attorney, facilitator, or some combination thereof). Many intercountry adoption agencies offer a sliding fee scale.

Depending on the country, there may be additional fees, such as:

• Child foster care (usually in South and Central American adoptions)
• Parents' travel and in-country stay(s) to process the adoption abroad
• Escorting fees, charged when parents do not travel but instead hire escorts to accompany the child on the flight
• Child's medical care and treatment (occasionally in South and Central America)
• Translation fees
• Foreign attorney fees
• Foreign agency fees
• Passport fees
• Visa processing fees and costs of visa medical examination

Resources to Help Defray Adoption Costs

In many cases, tax credits, subsidies, employer benefits, and loans or grants can help with adoption costs.

Tax credits.

Adoption tax credits may be available to defray some adoption costs. The amount may depend on family income and any other adoption benefits. Parents may want to check with a tax professional to determine applicable benefits.

Federal tax credits and tax exclusion. Prospective adoptive parents can find information about tax rules regarding adoption at the IRS website. Parents should look for information on the IRS Adoption Taxpayer Identification Number and information on the Adoption Tax Credit.

State tax credits. Several States have enacted State tax credits for families adopting children from the public child welfare system in that State. Some are restricted to adoptions from foster care, while others are not.

Subsidies and reimbursements for children with special needs.

Each State has its own definition of children with special needs, but they often include children who are older, have disabilities, belong to a minority group, or must be placed with siblings. To facilitate the adoption of these children, who often are in foster care, States may provide reimbursements for some adoption costs, as well as subsidies for some children.

Reimbursement for adoption costs. After families have finalized the adoption of a child with special needs from the public child welfare system, they may be able to apply for reimbursement of expenses they paid related to the adoption, including home study fees, travel expenses to see the child, and attorney fees. Most States, under a Federal match program, offer non-recurring adoption expenses reimbursements up to a set limit (which cannot exceed $2,000).

Subsidies. Federal and State adoption subsidies (or adoption assistance) may be available to help adoptive parents pay for the ongoing care of children with special physical, mental, or emotional needs. In addition, some children qualify for Supplemental Security Income (SSI) or Medicaid coverage.

Employer benefits. 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. (Corporate human resource departments can provide employees with information about any benefits available.)

Adoption Loans and Grants. Adoptive parents may be eligible to receive a loan or grant to offset some of their adoption costs. Such programs may have specific requirements regarding the type of adoption that is eligible, or they may give preference to families with the greatest financial need or with other specific characteristics. Many agencies also have adoption grant programs. More detailed information may be found by checking the resources listed below.

About the Author

www.childwelfare.gov
Formerly the National Clearinghouse on Child Abuse and Neglect Information and the National Adoption Information Clearinghouse, Child Welfare Information Gateway provides access to information and resources to help protect children and strengthen families. A service of the Children's Bureau, Administration for Children and Families, U.S. Department of Health and Human Services.