Comparing Costs at Adoption Agencies

Any effort to compare costs at adoption agencies will require some legwork. There is no apparent one-size-fits-all Web site to compare adoption agency costs among the estimated 1,700 agencies in the United States. Regulations vary widely among states, and adoptive parents vary widely in their desires.

No-Cost Adoptions
One fact is for certain, however: If you want to adopt, you can afford to do so, as long as you can support the cost of providing for the child. An adoption itself can literally cost nothing. On the other hand, if you want a certain type of child or a child of a certain nationality, you could be looking at $40,000 or even more.

The source for the "no up-front cost" adoption is the foster care system. There are shortages of both foster parents and adoptive parents across the United States. Therefore, there are incentives for adoption, most recently enhanced through a federal law, which is wordily entitled the Fostering Connections to Success and Increasing Adoptions Act of 2008.

In this scenario, you still have the final say-so in choosing the child you adopt.

Ways to Compare Costs
The Web site Adoption.com offers a wide range of advice geared not so much to cost comparisons among agencies but cost options based on the type of adoption. An adoption from foster care is pegged at between $0 to no more than $2,500. A licensed private agency may charge as little as $5,000 for a domestic adoption, but a typical package is in the $15,000 range. An international adoption normally costs between $20,000 and $30,000.

Regardless of costs, adoptive parents should beware of any adoption agency that requires a large sum of up-front payments. The starting point should amount to no more than an application fee. Remember, always, that it's a buyers' market, and you are in charge.

Checklist for Adoption Costs
To comparison shop, here's a list of fees that you must assemble from the adoption agencies and from other sources:

• Application fee.
• Home study and preparation services.
• Placement fee. (The main item.)
• Post-child placement services.
• Parent physical examination.
• Parent psychiatric evaluations.
• Attorney fees for document preparation and court representation.
• Expenses paid to support birth parent during pregnancy and at birth (if you desire to adopt an infant).
• Adoption counseling.

For an international adoption, you may have to pay orphanages and foreign government agencies, US State Department fees and visa costs. You may also have to pay for travel to adoption hearings.

Financial Support for Adoption Costs
As a prospective adoptive parent, you may feel that you are being asked to shell out a whole lot of money for adoption costs. Don't feel alone. You may be surprised at the various sources of support to help with your adoption costs.

• Start with your employer. You may qualify for everything from adoption cost cash support to temporary paid leave to extended unpaid leave. On Adoption.com, you can view details of what is offered by hundreds of employers, from Dow Chemical Co. to Domino's Pizza.
• Consider federal tax benefits. Households with incomes up to $210,820 per year qualify for a one-time adoption tax credit of up to $11,390. A family earning the full $210,820 won't get anything near the full $11,390, because there's a sliding income scale, but this is a resource to keep in mind. To see where you may stand, review IRS Form 8839.
• If you are on military duty, you may also qualify for a tax credit of up to $2,000 per adopted child, to a maximum total $5,000. This credit is available annually, not just one time.
• In addition to adoption tax credits, keep in mind that the adopted child becomes a permanent member of your family. Therefore, the adopted child qualifies for the exact same child tax credits and deductions as those for your own birth children. If your adopted child one day attends college, then you are in line for even more tax breaks.
• Your state also is likely to offer an adoption tax credit, although it won't be as large as the federal credit.

Tax credits linked to adoption costs can be complicated. Even if you have never used a tax preparer in the past, this might be the time to do so, at least for one tax year. Low- and low-middle-income adoptive parents can qualify for free tax preparation by contacting their local VITA (Volunteer Income Tax Assistance) program during tax season, which often is coordinated by the local United Way office or a local library.