Understanding the Adoption Tax Credit
By Ryan Hanlon and Becky Wilmoth
The Adoption Tax Credit can significantly offset the costs and fees of an adoption process, but prospective adoptive parents need to ensure they understand the basics before determining how much it can help them. In this updated Guide to Understanding the Adoption Tax Credit, we explain what the ATC is, how it is different from a tax deduction, how it works, and what the eligibility and qualifying expenses are. We also discuss proposed legislation to improve the ATC’s ability to help more families and strengthen opportunities for more children to thrive in permanent, loving families.
International Adoption Net has recently completed a training from the University of Minnesota Adoption Medicine Clinic. During this training they shared with our staff more in-depth ways of reading a medical referral, what types of special needs they have seen in the countries IAN works with, and what the quality of life is for specific special needs. Judith K. Eckerle, M.D. is very knowledgeable in the international medical field and was so helpful in answering all our staff’s questions with detailed information.
IAN is very grateful to have connected with this program to receive ongoing training about specific special needs. We are now referring families to University of Minnesota Adoption Medicine Clinic when reviewing a referral and needing medical professionals’ opinions. The Adoption Medicine Clinic has helped many families since 1986 review referrals, discuss the resources needed for the specific special need and what the severity of the need may be. The Clinic will look at the medical report, any background information on the child, and review pictures and videos. They then will discuss with the family any concerns they may see and discus how to best care for the child.
Families can connect with this clinic by going to their website at https://adoption.umn.edu/. They have many resources for families to learn from such as how to measure head growth, fetal alcohol syndrome, child development, mental health, etc.
They do have a fee for their different services. On their website they have a breakdown of what each service would cost. Their turn around time for looking at a referral is 1-3 days and can go quicker if it is time sensitive.
We recommend families look at the University of Minnesota Adoption Medicine Clinic when considering or in the process of foster care, domestic or international adoption.
/contact/ This is a guest post from our partner Diane Hogan. She is an adoptive parent twice over, adoption and education expert, and President of A Step Ahead Adoption Services.
Are you a family who want to start or build your family and don’t know if adoption is right for you? If so, you have probably been on the Internet looking at all the choices, options and decisions you would need to make to just take the first step into adoption. Hopefully this article will help you understand your choices, fine tune your options and guide your decision-making process.
There are 3 primary paths to adopting a child – domestic (US) adoption, international adoption and/or foster-to-adoption. How do you know which path is best for you? Consider the child you see coming into your home and ask yourself these 5 simple questions:
1) What age is this child? Most domestic adoptions are newborn-to-1 year of age placements; most international adoptions are toddler-thru-school aged; most foster-to-adoption placements are 1-year to 18-years of age (after 18, most children “age out” of the foster care system).
2) What race or races of child can you consider? In domestic adoption, you have children of all colors of the rainbow and racial combinations; however, the least placed race (in the US) is Asian. For foster-to-adoption, again all the possible racial combinations of children are eagerly awaiting their forever families. International adoptions, you have to be country-specific, thus you will be defining race(s) upon selecting a country. To get an overview of options in this area, see: https://travel.state.gov/content/adoptionsabroad/en/adoption-process.html
3) What timeframe are you considering? Most domestic (US) adoptions can occur in 1-year or less unless you are gender-specific and then that could take up to 2 years. International adoptions are country-specific and will be dependent on how well your US agency or attorney is connected with the foreign country’s embassy, orphanages and laws. Generally speaking allow a minimum of 2 years for the process. For foster-to-adoption, you would need to be able and willing to foster a child until they are eligible for the adoption rolls. That process is often 1-2 years depending on your county’s policy for a birth parents time to attempt reunification – the goal of the foster system.
4) Are you gender-specific? If so, then focus more on international or foster-to-adoption because it is much easier to select a boy or girl, or both! In domestic adoption, you become dependent on a gender-defining ultra sound or waiting for a born baby.
5) Do you have a budget defined? Most domestic and international adoptions are running $30,000 -$50,000 for the cost of preparing, adopting and traveling. Foster-to-adoption is more affordable as you may only be asked to pay for legal fees and travel. Remember, we currently do have an adoption tax credit that may assist you after you adopt. For more information, see: https://www.irs.gov/taxtopics/tc607.html
Still confused? Feel free to send us an email or give us a call. We provide adoption education, guidance, support and resource referrals for many various aspects of adoption. If you are a family desiring a domestic adoption or adoption education, we have consultants across the US to talk with you and discuss the process of domestic adoption. If you are considering an international or foster program, we can connect you with agencies speializing in the programs you are interested in.
Diane Hogan is an adoptive mom of two “babies” (now respectively 21 years of age and 18 years of age). Along with her husband she adopted domestically and has two open adoptions. She hold BS and MA degrees in education. Worked for 20 years in public education (classroom teacher, curriculum developer, program specialist, teacher trainer). Besides her two children, she is most proud of her 2-years or remission from Hodgkins’ Lymphoma! Diane now owns/operates A Step Ahead Adoption Services for the last 16 years from Colorado Springs, CO. A Step Ahead Adoption Services (ASA), in the big picture, is a consulting services designed to help adoptive parents seeking a domestic adoption through an agency or attorney in the US. We educate, guide, support our client families who are seeking a domestic or international adoption. ASA also provides education for agencies and law firms that work in adoption. They can offer 1:1 classes, workshops and seminars. They have an extensive online adoption & parenting library for client families (over 80 documents), a prerecorded 20-minute class on the domestic adoption procedure and 45 short vignettes of interviews with adoptees, adoptive parents and an occupational therapist. Our ASA clients have access to all of those educational materials. ASA contracts with consultants who work for us across the US to support adoptive families and agencies. If you prefer to go international or foster-to-adopt, we will happily refer you to professionals in your area. ASA website is: www.astepaheadadoption.com .
If you would like your article posted as a guest on our blog, please contact us.