The costs of adoption in the United States are wide-ranging and require financial planning, says a Feb. 24 article in the Wall Street Journal. Agency fees, legal costs, travel and medical expenses can add up quickly, so experts suggest that a financial plan with a budget for unexpected expenses is a wise route for hopeful families.
The article breaks down the costs of various avenues for adoption in the United States as follows:
- Foster care adoption fees may "range from nothing to about $2,500."
- Private agency adoptions "can run can run anywhere from $5,000 to $40,000."
- Independent adoptions "might run $8,000 to $40,000."
Many U.S. families evaluate adoption in the United Statues, but ultimately choose international adoption to build their families. International adoption fees can exceed those of domestic adoption. According to the article, "the costs of international adoption can average $35,000 to $50,000."
Because of the costs associated with most adoptions, families "should prepare for an adoption almost as if they were preparing to apply for a loan," says Chip Workman, a financial adviser in Cincinnati who is quoted in the Wall Street Journal article.
The federal adoption tax credit was made permanent with the recent fiscal cliff legislation. The maximum amount of the credit for 2013 is $12,970, which helps many families offset adoption expenses. However, given the costs of completing an adoption in the United States, today's hopeful families often employ novel ideas to help build their adoption accounts. Adoptive Families magazine has a collection of adoption financing articles that provides families with guidance on available adoption grants, loan programs and personal fundraising tactics.