Adopting 101

Adopting 101 spells out the financial assistance, benefits, programs and incentives available if you're interested in adopting a child from a foreign country. International adoption can seem daunting until you realize that our federal government has made the process of how to adopt a child not only easy, but financially accessible for almost everybody. For example, did you know that most of the costs of an international adoption will be returned to you through federal tax credits? Effective in January 2002 there is a $10,000 per child credit that you receive for adoption expenses. Get Publication 968, "Tax Benefits for Adoption," which can be downloaded from www.irs.ustreas.gov.

Adopting 101--State Tax Credits

Also many states offer extensive tax credits, up to $10,000, for adoption. Contact your state's Division of Family Services and state tax office. Did you know that corporate matching gifts may be available? Many corporations have adoption assistance programs. Check with your employer's Human Resource Department or check www.adoptionbenefits.com on the Internet.

If you're in the military, there is a one-time subsidy for full-time military personnel. Adoptive couples or singles can receive up to $2,000 per child or $5,000 maximum for siblings. Military families are entitled to adoption benefits up to $2,000 a year for reasonable and necessary expenses incurred from adoptions finalized after October 1, 1990. These adoptions can be infant, international, or children with special needs.

There is a non-recurring (meaning one adoption only) federal program administered by the states which allows a reimbursement for foreign born children adopted by U.S. citizens. This reimbursement covers agency fees, legal costs and transportation, and is available through your home state for families who adopt a child with special needs or a child from minority cultures. The benefit differs state by state and is computed according to the cost of the adoption.