ADOPTIVE FINANCIAL ASSISTANCE
TAX CREDIT FOR ADOPTION EXPENSES
Taxpayers who adopt a child may be able to claim a tax credit of up to
$5,000. for qualified adoption expenses for each eligible child and up to $6,000. for a
child with special needs. Qualified adoption expenses include reasonable and necessary
adoption fees, court costs, attorneys fees and other expenses directly related to the
adoption. Families with annual adjusted gross incomes under $75,000. would be
eligible for the full tax credit, while those with incomes between $75,000. and $115,000.
could receive a partial tax credit. An accountant will have the details.
TAX EXEMPTION FOR EMPLOYER-ADOPTION ASSISTANCE
For employers with an adoption assistance program, Legislation allows tax
exemption of up to $5,000. for expenses incurred or paid in the adoption of a child for
under $75,000. and less exemption for incomes between $75,000. and $115,000.
Loan eligibility is determined by financial need. Their objective is to
provide loans for prospective parents who would not be able to continue with
an adoption because of lack of funds. The maximum amount of money loaned
is $7,000. for a single adoption and $10,000. for families adopting two
children. Loans are given only to prospective parents adopting
The National Adoption Foundation
The mission of the National Adoption
Foundation is to encourage pre-adoptive parents and children to come
together, grow, and flourish. The National Adoption Foundation provides
financial support, information, and services for adoptive and
prospective adoptive families in order to assist them in the successful
adoption of children. Programs includes grants, unsecured
loans, credit cards and deposit products to aid families with the
expenses associated with adopting and raising children. These programs
are made available with help from MBNA America
Bank, N.A. To apply for an MBNA loan, call (888) 627-8767.
For more information about any of these programs, please call or
write The National Adoption Foundation, 100 Mill Plain Road,
Danbury, CT 06811, (203) 791-3811.
United Way International
Provides assistance for costs of travel for children adopted with
illness needing immediate medical attention.
Applications selectively considered and must be supported with a
Doctor's statement. Contact: United Way International, Att:
Melissa Guerra, 701 N. Fairfax St., Alexandria, VA 22314, (703) 519-0092
World Association for Children and Parents is a well-established
adoption agency offering financial assistance to perspective parents
that adopt through their organization
Credit unions may also offer a special adoption loan program.
ADOPTION AIR FARES
An Adoption Air Fare program has been put together by The Preston Group,
an established travel agency in Salt Lake City, Utah. They specialize in saving money for
last minute travel arrangements which normally can be very costly. Just mention it is for
adoption related matters. Ask for Debb, Traci, or Jill
for assistance at 1(800) FLY-4KIDS (359-4543).
FAMILY AND MEDICAL LEAVE ACT
The federal FMLA and the California counterpart, the California Family
Right Act of 1993 (CFRA) provide covered employees with the right to an unpaid leave of
absence for up to 12 weeks within a 12 month period, in order to address family and
medical responsibilities. This leave can be taken in the event of an adoption. Eligibility
starts with employers who regularly employ 50 or more employees. One must have been
employed for at least 12 months and worked at leased 1250 hours during those preceding 12
months. Specific details and individual circumstances should be addressed to an employment
INSURANCE BENEFITS FOR THE ADOPTED CHILD
Laws have mandated that all insurance companies offer and provide
dependent benefits to a child being adopted by the policy subscriber. This coverage
usually takes place upon birth of a newborn. Check with your medical insurance