Federal Adoption Tax Credit
The adoption tax credit offsets qualified adoption expenses, making adoption possible for families who could not otherwise afford it. Taxpayers who adopt an eligible child may qualify for an adoption tax credit. In general, the credit is based on the reasonable and necessary expenses related to a legal adoption, including adoption fees, court costs, attorney’s fees and travel expenses. Income limits and other special rules apply.
Internal Revenue Service
Hours of Operation: Monday – Friday, 7 a.m. – 10 p.m. your local time
Click HERE for more information.
Adoption Credit, IRS Tax Topic 607 – information on qualifying expenses paid to adopt
Frequently Asked Questions compiled by the Adoption Tax Credit Working Group (March 2017)
- The Adoption Tax Credit has been made permanent.
Adoption Tax Credit Amounts (if Congress makes no changes):
- 2013: $12,970
- 2014: $13,190
- 2015: $13,400
- 2016: $13,460
- 2017: $13,570
- 2019: $14,080
- Unused credit may be carried forward up to five tax years.
For more information on the tax credit, see Form 8839, Qualified Adoption Expenses (PDF), and the worksheets located in the instructions (PDF), both available at the IRS web site listed above.
For detailed advice regarding the credit, contact a tax advisor.
State Tax Credits
Many states also offer adoption tax credits. Visit your state’s web site or contact your tax advisor to find out if a state tax credit may be available to you.
Check with your employer to see if your workplace has an adoption benefit. If they do not, the “Adoption-Friendly Workplace” program offers information and tools to propose one to your employer. A listing of the best adoption-friendly workplaces is also available on their web site.
Adoption loans to help make your dream a reality.
Click HERE for resources.
America’s Christian Credit Union
America’s Christian Credit Union has been a leader in adoption financing since they started their Adoption Loan Program in 2009. Since then they’ve helped unite over 1,200 families including Adoption Associates families! ACCU is not just interested in joining families together, they want to strengthen them too.
Additional Financial Options
A Child Waits Foundation
A non-profit, charitable foundation that provides low interest adoption loans and grants to give financial assistance to families adopting internationally.
1136 Barker Road
Pittsfield, MA 01201
A Child’s Desire
Offers grants to parents adopting hard to place children, special needs children, and children over the age of eight. Offers adoption grants to nonprofit agencies as well as an adoption fundraising program to adopting families.
1735 1/2 Washington Street
Natchitoches, LA 71457
Adoptive Families Coalition
Adoptive Families Coalition (AFC) is a non-profit organization that offers resources to families with post adoption challenges. AFC is dedicated to the holistic support of families with adopted children who demonstrate emotional, behavioral, or psychological challenges. AFC fills a gap for post-adoption financial support to help these children receive proper therapeutic treatment. In addition to financial assistance through their sponsorship program, AFC provides parent coaches, resource networking database, and support for families struggling to help their child heal from attachment and trauma issues.
P.O. Box 345
Hyde Park, UT 84318
AdoptTogether is a non-profit funding platform helping families raise money to pay for adoption costs, and is the world’s largest crowdfunding platform for adoption. To learn more, click on the link below.
Bills Tax Service-Adoption Tax Credit Specialist
Bills Tax Service is located in Centralia, IL. They are very passionate about helping as many adoptive families as possible with the Adoption Tax Credit. Click on the link below for more information.
Dave Thomas Foundation for Adoption (formely: Adoption Friendly Workplace)
Helps to find loving families for children waiting in foster care.
716 Mt. Airyshire Blvd., Ste. 100
Columbus, OH 43235
Dave Thomas Foundation for Adoption
Gift of Adoption Fund, INC.
2001 Waukegan Road
Techny, IL 60082
God’s Grace Adoption Ministry
Seeks to help Christian families overcome the financial burden of adopting children. Works in cooperation with the agency to assist the family with their financial needs; depending on the individual family needs; financial assistance is available in the form of grants and interest free loans.
P.O. Box 4
Modesto, CA 95353
A national non-profit 501(c)3 financial assistance grant program that provides qualified couples and individuals (regardless of race, religion, marital status or sexual preference) with grants up to $15,000.
P.O. Box 787
New York, NY 10150
Hebrew Free Loan
Provides interest free loans up to $10,000 for adopting families in Northern California.
131 Steuart Street, Ste. 520
San Francisco, CA 94105
His Kids Too!
His Kids Too! is a 501(c)3 charity that has a wonderful grant program designed so that your friends and family can assist you financially with adoption costs. Donors make tax deductible donations to His Kids Too!, and adoptive families apply for a grant from the funds generated by donors. This is beneficial so that you are in control of your fundraising efforts and donors will have complete confidence that donations will go directly towards adoption expenses.
219 B. Delta Court
Tallahassee, FL 32303
Home for Good Foundation
Home for Good is involved in the ongoing work of planting adoption ministries in churches around the world. These ministries are created to support families who would like to adopt but are burdened by the cost. A non-profit 501(c)3 organization.
14175 W. Indian School Rd.
Ste. B-4 #147
Goodyear, AZ 85395
International Adoption Resources
Provides grants for international adoptions ranging from $500-$1500 as funds are available.
Download application for funding on website
Lifesong for Orphans
To help families bridge the financial barrier of adoption, Lifesong for Orphans offers adoption grants, interest-free loans & fundraising support. With the commitment of our 100% pledge, any donations made on behalf of adoption families will go straight towards adoption expenses (no administrative fee deducted).
P.O. Box 40
Gridley, IL 61744
Lifesong for Orphans
North American Council on Adoptable Children
Provides assistance to figure out tax credit & subsides but does not provide loans or grants.
970 Raymond Avenue, Ste. 106
St. Paul, MN. 55114
North American Council on Adoptable Children
The National Adoption Foundation has partnered with Prosper.com to provide adoptive families with adoption loans to receive the financing they need. Prosper is America’s first peer-to-peer lending marketplace that has over 1,480,000 members. They connect people looking to borrow money with people who have money to invest.
Saving Children, Building Families
The Saving Children, Building Families Foundation believes that every child deserves a home. Their goal is to direct the limited funds available to where it will do the most good based on the available information. They prefer to fund international adoptions.
Awards financial adoption grants to qualified families already in the process of adopting. The size of the grant awarded is determined by several factors, the most important being need.
PO Box 647
Franklin, TN 37065
The ABBA Fund
Provide interest free loans to parents who believe that God is calling them to grow their families through adoption.
P.O. Box 868049
Plano, TX 75086