It’s no secret that adoption is expensive. Estimates vary, but according to a study of 1,100 published in Adoptive Families Magazine, the average family spends $39,966 adopting through an agency and $34,093 in open adoption. If you’re dealing with a limited income, these figures might make adoption seem out of the question. The good news? It’s possible to adopt without spending a fortune, as we demonstrate below:
Stick With Domestic Adoption
Although any adoption will strain your budget, international adoptions are notoriously expensive. Location matters; statistics from Adoptive Families Magazine indicate that adoptions from South Korea and Ethiopia are far more expensive than those from China. Still, domestic adoptions are nearly always more affordable than international proceedings.
If both international and conventional adoptions are out of the question, foster care adoption may be a viable alternative. Although challenging, this approach makes adoption feasible in families that otherwise cannot afford agency fees or birth mother expenses. Be aware that foster adoptions tend to involve older children or teenagers.
Take Advantage of the Federal Adoption Tax Credit
To ease the financial burden of adoption, the federal government provides a one-time tax credit. This credit is not refundable; you’ll only benefit if you owe taxes. What’s more, you’ll receive no more than your total liability. For example, if you owe $5,000 in taxes, you’ll receive a $5,000 tax credit rather than the maximum.
In 2018, the maximum available adoption tax credit reached $13,840. This figure increases annually alongside the cost of living. Additionally, income limits may apply based on your modified adjusted gross income (MAGI).
If you’re struggling with the financial or legal concerns of adoption, seek counsel from the law firm of Barna, Guzy & Steffen, Ltd. Get in touch today to learn more about the adoption process—and how the law firm of Barna, Guzy & Steffen, Ltd. team can help.