Resources You Can Count On To Help You Afford Adoption
- Federal Adoption Tax Credit and Income
- Federal Tax Credit for Adoption Expenses
- Federal Income Exclusion for Employer-Provided Assistance
- Employee Benefits Program
- State Adoption Subsidy Assistance
- Federal Family and Medical Leave Ac
- National Council for Adoption
Catholic Guardian Society and Home Bureau is a not-for-profit agency dedicated to providing high quality services to children, birth parents and adoptive parents. The actual cost of providing services far exceeds revenue from fees. Fees received from adoptive parents cover only a portion of the professional services provided by Catholic Guardian Society and Home Bureau. Since we do not receive government funding, we rely on fundraising, donations and endowments to keep adoption fees affordable for our clients.
Catholic Guardian Society and Home Bureau's fee is separate from those required by the country of origin, which vary internationally. Travel costs plus specific immigration and documentation fees apply also when adopting outside of the United States.
Catholic Guardian Society and Home Bureau's service fee includes among other services:
- the assignment of a personal social worker
- home study and post-placement services
- educational workshops to help prepare for adoptive parenthood
- assistance from document preparation specialists
- birth parent expenses covered for domestic adoptions
- support for humanitarian aid program.
The National Council for Adoption Financing Plan
The National Council for Adoption recognizes that adopting is not easy. But they are offering a financing plan that could make it easier than you think. NCFA’s Adoption Line of Credit is a reliable, renewable source of funds that offers:
- Unsecured liens of credit of up to $25,000
- Initial repayment terms ranging from 24 to 84 months, depending on amount borrowed
- Predictable, affordable monthly payments
- No annual fees
- No collateral necessary
Call 1-888-628-7700 or visit NCFA on the web at www.adoptioncouncil.org/financing.htm
Federal Adoption Tax Credits
Parents can make adopting from Catholic Guardian Society and Home Bureau more affordable through federal adoption tax credits, corporate employee benefits, state subsidies and Catholic Guardian Society and Home Bureau's special funds.
IRS Publication 968 Tax Benefits for Adoption for use in preparing 2006 returns contains essential information about adoption tax credits and income exclusions. This is a .pdf file and requires Adobe Reader for viewing.
Federal Adoption Tax Credit and Income Exclusion
On their federal income tax return, adoptive parents may be able to claim a tax credit for qualified adoption expenses and/or an income exclusion for employer-provided adoption assistance for qualified adoption expenses for both domestic and international adoption.
Following is a summary of currently available information. Parents should contact a tax professional to review the IRS guidelines in order to understand the impact of the new adoption tax credit and income exclusion provisions on their own situation.
A tax credit is typically more valuable than a tax deduction because qualified expenses are subtracted dollar for dollar against your tax liability. For example, is you owe $5,000 in federal taxes and have $3,000 in qualified adoption expenses, your tax bill is reduced to $2,000. If your tax bill is smaller than the credit, the unused portion of the credit may be carried forward for up to five years.
Qualified expenses include "reasonable and necessary" adoption fees, attorney fees, and some travel costs, including necessary transportation, meals, and lodging. The credit does not apply to expenses reimbursed by the government or private programs for which an income-tax deduction or credit already is allowed.
Federal Tax Credit for Adoption Expenses
For tax year 2010, the maximum credit for qualified expenses of a legal adoption is $13,170. In the case of a special needs adoption, the maximum credit is also $13,170 and is applied regardless of any qualified expenses.
Income Limits
The limits on the amount of income adoptive parents may earn in order to take advantage of this credit are as follows: the entire credit is available to families whose adjusted gross income is $152,390 or less. The amount of the credit is phased down for families with adjusted gross income over $152,390 and phased out at $192,390. If a family's adjusted gross income is more than $192,390, it cannot take advantage of the credit.
Differences in Types of Adoptions
- Adoption of children from the United States (without special needs): parents may take a $13,170 credit for qualified adoption expenses. The expenses may be taken in the year in which they are incurred or paid.
- Adoption of children from other countries: parents may take a $13,170 credit for qualified adoption expenses after the adoption is final.
- Adoption of special needs children: parents may take a flat $13,170 credit without documenting the expenses. To be deemed a special needs child by the IRS, the child must be born in the United States; a state must have determined that the child cannot or should not be returned to his parent's home and that the child probably will not be adopted unless some assistance is provided to the adoptive parents; and the adoption must be final.
Note: A child placed by Catholic Guardian Society and Home Bureau whom Catholic Guardian Society and Home Bureau considers to have special needs might not meet the IRS definition of special needs.
Federal Income Exclusion for Employer-provided Assistance
The exclusion allowed for employer-provided assistance is $13,170 per child. You can claim both an exclusion and a credit for the same adoption, but not for the same expenses
Employee Benefits Programs
Many companies offer some type of adoption benefits to their "regular" employees. These benefits, depending on your company, may include:
- Direct reimbursement of up to $13,170 upon placement
- Paid leave -- in addition to vacation time, sick leave, or personal days
- Unpaid leave --personal, medical, or child care
- Adoption seminars and classes, as well as counseling and support Even if your employer does not currently offer adoption benefits, ask about their availability. You may be able to convince your company to begin offering them.
Your employer may also have an Employee Assistance Program (EAP). This benefit helps employees deal with unusual personal situations or problems.
State Adoption Subsidy Assistance
Infants diagnosed with specific medical conditions are eligible for State Adoption Subsidy Assistance. Under New York and New Jersey State laws, an application for subsidy can be submitted at the time of diagnosis. Application is generally made at the time of placement, although assistance can be accessed following finalization, if the family had not been aware of the presence or severity of the disability. Catholic Guardian Society and Home Bureau will help apply for this assistance whenever a child may be eligible.
Federal Family and Medical Leave Act
Unpaid leave under the federal Family and Medical Leave Act can be an option. This act allows individuals to take up to 12 weeks unpaid leave with certain benefits, without jeopardizing employment. This is not exclusive to an adoption benefit since it is available for anyone who works for a company with 50 or more employees. However, it can provide valuable time for a new mother or father.
Cost Guidelines
Catholic Guardian Society and Home Bureau Sliding Scale Fee for Professional Services
Catholic Guardian Society and Home Bureau is a fully licensed not-for-profit adoption agency. Our first priority is to find permanent loving homes for infants and children. The cost of our professional services to adopting families is determined by a sliding scale.
Domestic: CGSHB's fee is $20,000 (plus legally allowable birthparent expenses), though we will look at a sliding scale based upon need.
International*: Kinship Fees range from $500 to $2,100 (post-placement visits are $300 each)
Networking Agency Fees are $2,100 (post-placement visits are $300 each)
Re-Adoption Fees are $500
Home Study Update Fees are $500
2nd Placements: Fees are 75% current basic agency fees for domestic or international when you have previously adopted through our agency
*In addition, for international adoptions, families pay country-specific fees ranging from $16,500 to $28,000 directly to the networking agency handling the placement program. There are also additional costs for airfare, food, lodging, translation, visas and visa medicals depending on the country.
Catholic Guardian Society and Home Bureau does not receive any government funding. We rely on contributions from private foundations and individual donations to keep our fees affordable for our clients.
See our How You Can Afford Adoption section to learn about making adoption from Catholic Guardian Society and Home Bureau more affordable through federal adoption tax credits, corporate employee benefits, and state subsidies.
In accordance with Hague regulations, Catholic Guardian Society and Home Bureau (CGSHB) will inform all prospective adoptive parents at the outset that they have absolutely no obligation to make any donation to CGSHB at any time. However, in the event that prospective adoptive parents wish to make a charitable donation to CGSHB, it would only be accepted after adoption finalization as occurred.
Catholic Guardian Society and Home Bureau can advise adoptive families on how they can afford fees and other related costs. For more information, please call us at 212-371-1000 ext. 2136.