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A few pointers
First, the $10,000 tax credit is the best incentive going, but you can only take it beginning in the year you've finalized the adoption, and of course you need to OWE money to the government to wipe out your tax liability. I'm going through the process of dramatically decreasing my fed withholding to take advantage right now.
Second, a private, or independent adoption, will save you lots of money. Agency adoptions can cost between $20,000 and $40,000, and international adoptions are pushing $20K now too. A private adoption only requires legal costs, which average between $3,000 and $5,000. But we learned a tough lesson in a different area - encourage the potential birthmom to get on Medicaid even if she has health insurance. We got stuck covering a $2,000 deductible, plus 20 percent of all ensuing costs after that, so medical costs are going to be a good $5,000 for us, then there's the legal fees.
I DO NOT recommend doing any of this without a good, reputable adoption lawyer. They may charge you $300 an hour and you'll cringe at the bills, but the court filings, the documents needed, and if it's an interstate adoption, the ICPC needs to be in tip top shape or you'll be stuck in another state with a new baby for weeks.
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