- 1 Government Assistance Programs for Adoption
- 2 Federal Adoption Tax Credits
- 3 State Subsidies for Adoption
- 4 Personal Grants, Loans, Gifts, or Benefits
- 5 Employer Sponsored Adoption Benefit Programs
- 6 Mills Adoption Law in Raleigh, NC, Gives You the Ability to Anticipate and Plan for Life’s Challenges, So They Don’t Become Barriers to Success
Adoption costs often add up quickly between adoption application fees, agency fees, home study costs, attorneys’ fees, and travel and lodging expenses. Adoptive families may also cover costs for the birth mother for prenatal and neonatal care, lodging, and living expenses.
The adoption process in North Carolina is time-consuming and expensive. Read on as Attorney Bobby Mills of Mills Adoption Law in Raleigh, NC, describes adoption costs and adoption financial assistance options to help adoptive families afford the additional costs of adopting a child in the paragraphs below.
Government Assistance Programs for Adoption
Established in the national Adoption and Safe Families Act of 1997, the Adoption and Legal Guardianship Incentive Payments program improves adoption and guardianship rates for children and families across the country. The most recent reauthorization of the program came in 2021 with the renewal of the Family First Prevention Services Act of 2018.
North Carolina adoption requirements make adopting a child a costly investment in the effort to provide a better life for a child. The assistance available to adoptive families to cover adoption costs varies from case to case. You may need to seek adoption financial assistance through multiple state and federal benefit programs.
Federal Adoption Tax Credits
You may qualify for tax credits when filing taxes for the year you filed your adoption petition in North Carolina. For adoptions finalized in 2023 the maximum credit will be $15,950 and the maximum credit will begin to be phased out when the adoptive parents’ Modified Adjusted Gross Income (MAGI) for 2023 is greater than $239,230, and they will not be entitled to any credit if their MAGI is equal to or greater than $279,230 for 2023. You may carry that credit for up to five years.
Adoption expenses that qualify for adoption exclusions and credits include:
- Adoption fees that are reasonable and necessary
- Attorney fees and court costs associated with filing your petition to adopt
- Reasonable and necessary travel costs, including lodging and meals
- Other expenses directly related to the adoption
State Subsidies for Adoption
Many states offer non-recurring adoption assistance to cover adoption-related costs. Suppose a child qualifies for special needs under Title IV-E. The adoptive family may qualify for subsidies to cover monthly maintenance, medical assistance, and other post-adoption services.
In North Carolina, a child qualifies for special needs benefits if they are:
- Six years old or older
- Two years old or older and a minority group member
- Part of a sibling group of three or more requiring placement in the same home
- Part of a sibling group of two or more requiring placement in the same home when one or more siblings meet at least one criterion for special needs
- A disabled child who requires professional assistance or assistive technologies
The child can also qualify if they have the following:
- A psychiatric condition that requires professional care and impairs mental, social, or intellectual function
- A behavioral or social disorder marked by age-inappropriate behavior or impairs mental, social, or intellectual function
- A diagnosis for other mental or developmental delays or disabilities
- An increased risk of developing any of the above-listed conditions due to intrauterine exposure to toxins, genetic history, or history of abuse or neglect.
- All the requirements to qualify for Supplemental Security Income
Personal Grants, Loans, Gifts, or Benefits
You may also cover your adoption costs by other means, including grants, loans, monetary gifts from friends or family, or benefits through work or the military.
Grants are gifts from organizations. Unlike loans, you don’t need to pay back a grant. Qualifications to receive a grant from a non-profit organization vary from group to group. Don’t forget other fundraisers like GoFundMe and local events. You can leverage your network, including friends, family, and employer.
Employer Sponsored Adoption Benefit Programs
As a part of their employee benefit package, many employers offer adoption expense reimbursement. Reimbursements are usually paid when the adoption is completed. Reimbursements may range from $2,000 to $10,000 per adoption.
Mills Adoption Law in Raleigh, NC, Gives You the Ability to Anticipate and Plan for Life’s Challenges, So They Don’t Become Barriers to Success
Call Mills Adoption Law at (919) 306-2899 or complete our online form to schedule a free 15-minute call with Attorney Bobby Mills. With over 35 years of experience helping to build families through adoption, he can help guide you through the North Carolina process, including gaining consent to the adoption, the social worker interviews, and other necessary steps the adoption requires. Mr. Mills has represented all members of the adoption triad—adoptive parents, birth parents, and adoptees. Let him anticipate and plan for life’s challenges so they don’t become barriers to your success with the adoption process.
Mills Adoption Law. Experience for what matters most. Family.
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