Adoption is an arduous and expensive process and definitely not a road to be embarked upon by the faint-hearted. It is a sacrificial journey that doesn't end the day the child comes home. Adoptive families often have to forego some of the materialistic pleasures of life in order to gather the financial resources needed to complete their adoptions. Adoption also demands a significant commitment of time in terms of paperwork and travel. Yet, there is something about giving a child a home and a future that causes people to make a commitment to go down that road no matter what the cost.
Families who are considering adoption can find help with their adoption costs through the Adoption Tax Credit. Amidst the intense controversy of the health care bill signed into law by President Obama recently, there's at least one provision every orphan advocate can cheer. The adoption tax credit was preserved for another year... and increased in value!
To encourage and support adoption, the Hope for Children Act, a permanent tax credit legislation offered to adopting parents to help offset the expense of adoption, was expanded by President Bush on June 7, 2001. This increased value of the credit from $5,000 to $10,000, and indexed it for inflation (meaning the credit would increase each year to keep up with inflation.) For 2010, its value had risen to $12,170. However, the 2001 increase was scheduled to "sunset" at the end of 2010. This would mean that any adoptions finalized after December 31, 2010 would be eligible for -at most- a credit of only $5,000.
This sunset has now been extended one year. That means that it will need to be extended again before the end of 2011. For the present, however, this extension comes as very welcome news for families considering adoption or in the adoption process.
Specifically, the provisions contained in the health care bill include:
- The current adoption tax credit has been extended until the end of 2011;
- The value of the adoption tax credit has been increased from $12,170 to $13,170.
- The increase is "retroactive," meaning that any adoption occurring after January 1, 2010 is eligible for this higher credit.
- The credit is now refundable. This means that even families that owe zero taxes can receive the full tax credit in the form of a tax refund to help with their adoption-related expenses.
For more information on the Adoption Tax Credit, go to this web address and type adoption tax credit into the search bar:
http://www.irs.gov/pub/query/html
Some people have a God-given desire in their heart to adopt a child but do not have the financial resources to do so. Others may not have the desire or feel called to adopt but have the financial means by which to help facilitate an adoption for another family. Our Adoption Assistance Fund provides a mechanism to match up the funds with the families. We gladly accept contributions to our Adoption Assistance Fund from those who have a desire to help other families adopt children.
Click here to donate to our Adoption Assistance Fund.
We provide interest free loans to adoptive families up to $5,000. As loans are repaid, we are able to use those funds to provide financial assistance to other families, thereby creating a self-replenishing Adoption Assistance Fund. When resources are limited, we must give first priority for loans to families adopting children through our Summer of Hope program. Families may also be eligible to receive grants by participting in our fundraising grant program.
Click here for ideas on how to fund your adoption and other sources of financial assistance.