Adopting a child will definitely affect your budget, but in many cases, financial assistance including adoption subsidies and tax credits can help to offset some of the expenses.
Adoption Subsidies
Adoption subsidies (also called "adoption assistance payments") are available to families that adopt children with special needs. Subsidies don't cover all of the costs of raising a child, but they can help you handle the costs of certain expenses and services to meet the child's needs.
Benefits you may receive through the adoption subsidy program are determined on a case-by-case basis. They may include monthly cash payments and/or medical assistance through the Medicaid (Title XIX) program. Subsidies are based on the needs of the child, not on the adopting family's income. Most adoption subsidies are provided through the federal Title IV-E Adoption Assistance Program.
Tax Credits
To help with the expenses of adopting a child, Congress has enacted an adoption tax credit.
For more information on the adoption tax credit, talk with your tax advisor. More information about this is available online or by calling 1-800-829-1040.
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