Adoption Q&A #15
|Date||:||August 22, 2008|
|Re||:||Family Law Update|
PAYING FOR AN ADOPTION [PART ONE]
Domestic adoption, usually in an in-state agency or proceeding with your own private placement adoption typically costs between $9,000 - $20,000. Without medical reimbursement, a Wisconsin expense range is $9,000 - $13,000.
Most adopting families need to make financial plans ahead of time in order to afford adoption. To assist with adoption (at least until 2010 when the current tax credit law expires), there will be a Federal Adoption Tax Credit which allows a dollar for dollar reduction in the adopting family’s income taxes for the year in which the adoption was finalized or, in the case of an unsuccessful adoption, in the year the case closed for the adopting couple. The current credit is $11,650. There is also state tax assistance available. It is necessary for the adopting family to have the funds to pay for attorneys, agencies, court costs and reimbursement expenses for the birth mother, but relief is available after the adoption is completed.
In addition to second mortgages, refinancing houses, and borrowing from friends and relatives, there are other resources available to help families with their adoption expenses. Additional references will be discussed next month.