[Pikea]

We're an AA couple and are trying to go through CPS to adopt. It has not been pleasant. The tens and thousands it costs to go through a private agency does not look pleasant either. We're not in poverty but we don't have $10,000 sitting around either. Could someone please PM me with info on how to afford to adopt privately and agencies that are pocket book friendly? I really wanted to give a child who needs a home a home but...

Pikea

[Proud2BHisMom]

Originally Posted by Pikea

We're an AA couple and are trying to go through CPS to adopt. It has not been pleasant. The tens and thousands it costs to go through a private agency does not look pleasant either. We're not in poverty but we don't have $10,000 sitting around either. Could someone please PM me with info on how to afford to adopt privately and agencies that are pocket book friendly? I really wanted to give a child who needs a home a home but...

Pikea

We were/are in the same situation; but decided to go with a private adoption because we really wanted to adopt an infant. There are some agencies that offer a sliding scale for their fees. Others may be willing to work out some type of payment arrangement. Our agency has been willing to work with us. Additionally, check with your employer as a lot of companies are now offering adoption assistance to employees.

[sbaglio]

Also remember that there is an adoption tax credit of over $10,000 that you can claim when your adoption is complete.

[Hadley2]

I'm sorry you are having a difficult time. Are you licensed foster/adoptive parents? What has been "unpleasant"?

[ProspectiveSingleMom]

You may also try getting a loan, esp. knowing that you'll be able to get the tax credit. Of course, that depends on your credit situation and such, but I have heard of people getting a loan through their bank or credit union to cover the costs.

[Sleeplvr]

I adopted an infant from the foster care system another through a private agency. Depending on where you live foster care adoption can be a breeze or extremely difficult. It took us about a year and a half to get a newborn who was adoptable. We did the foster to adopt program and ended up fostering a total of 7 kids and adopting only 1. In the last year we have been called about two infant straight adoptions but have had to pass.

One of the tricks with the foster care system is that they expect you to serve your time to adopt an newborn. We had a CW who told us "you help us, we'll help you." Since we "helped out" we were first on the list for a newborn that was a good match for our home.

For private adoptions... look for agencies that have sliding scales or payment plans. There are adoption loans through banks and credit unions. I just found out that my credit union does adoption loans recently. When we adopted there was only one bank doing adoption loans.

We paid our private adoption fees with a loan from my 401K and then my employer and my DH's gave us adoption assistance. Then we applied for the adoption tax credit and our adoption ended up being close to free in the end.

[Pikea]

I've read on the web that the adoption credit is not promised to you. You have to meet a certain tax qualification.

[Sleeplvr]

The amount you get back is based on how much you pay in taxes. If you only pay 5000 in taxes that's the max you can get back that year. I believe you can spread it out over 5 years to take the total credit... if that rule is still in effect. I had heard the 5 year thing was set to expire... I hope it has been extended. If you pay more than the tax credit in one year you will get the total tax credit as a refund.
You will need to sit down and review your previous tax returns and do a guesstimate of what you think you will be paying in taxes in the year you finalize. That will give you an indication on how much you can expect from the tax credit.
Just reminder that you can't get back more than you put into the system.

[uncomfortable]

OMG - $10,000, tax credits, loans, borrowing from 401K's, foster a child first. What the heck.
I adopted my daughter 21 years ago. She was 3 weeks old. I was placed with Catholic Home Bureau in NYC. An adoption advoicate, Coalition on Adoptable Children (unfortunately I searched them on the net and can't find them) placed me with CHB. I waited 18 mos. for my daughter. The cost? $1,000 lawyer fee (and my downpayment check bounced!). That was it! This is insane. This is not a business! There are so many AA babies that need a home. I wish you well, I'll send up prayers.
About a month ago, my daughter's bmom found her on My Space of all places! I'm feelin' a little uncomfortable.
Let me know if you're interested, I'll tell you the story up to now. My daughter is just a little too happy, and I'm feelin' a little uncomfortable.

[Sleeplvr]

I would love to hear your story. Please start a new thread so it won't get lost. Most of us have closed adoptions which seems to be the decision that a lot of AA bmom's make. Both of my kids bmom's didn't want to interfere in our parenting so there is zero contact. I anticipate contact somewhere down the road and figure it will be something similar to what you are going through now.

[Linny]

DO keep in mind what sleeplover already mentioned: That tax credit is ONLY allowed based on whatever you put into your taxes to begin with. Meaning, if you owe zero taxes at the end, you're NOT gonna collect the amount that you paid in adoption expenses, just because this tax credit exists. Believe me, a LOT of agencies/attorneys like to try to justify their fees based on 'that adoption tax credit you'll be able to take advantage of'!!!!! (Grrrrrrrrrrrrrrrrrrrrrrrrrrr...........)

In fact, I just spoke to an agency today to inquire about their fees. The Head adoption person told me their fees for placement were around 11k....and they based that 'on the fact that that's the amount you'll get from the adoption tax credit' !!!!!!!!!????????????

I informed her that once you adopt more than once, OR, if you already have many deductions anyway, the 'tax credit' seldom helps. She told me she didn't know that. (sigh)
And that comment's come from many 'professionals', let me tell ya. (sigh again) It's NOT a refund, as many agencies/attorneys like to tell you. It's only a 'credit' applied to whatever your tax liability is.

Sincerely,

Linny

[Pikea]

We haven't owed taxes since we've been married so I guess no tax credit for us.

[KarenInCa]

Pikea, I think the tax credit is getting lost in translation.

Most people have a tax liability during the year (the amount you pay to the feds monthly via paychecks). It's very rare that someone would have paid nothing in taxes on their monthly paychecks and still owe nothing at the end of the year. Unless you can prove that you have zero income at all ($0-$15,650 for a married couple, has a tax liability of 10% of their Gross earnings) or unless all of your income is tax exempt, there will be tax liability, which is different than OWING something at the end of the year. Many people overpay taxes during the year so that they don't owe in April. Is that your situation?
In other words, owing taxes at the end of the year is different than what your tax liability would be.

Let's suppose that thru the year, my husband and I pay out $400 a month from our paycheck. That's $4,800 we've paid throughout the year to the feds (400 X 12). At the end of the year, our tax liability (the amount we would be obligated to have paid thru the year) is $3,000. That would mean normally we would be getting $1,800 back from the feds in April ....with me so far?

Now, with the adoption tax credit, we would be getting that $1,800 back (normally), as well as the $3,000 that the feds said we would normally be liable for that year.

Then, the remainder of the $10,000 ($7,000) more, would be banked for the tax liability for the following year, and the following year, up to 5 years till it's exhausted.

At that rate, if life did not change, you could even make yourself exempt on W2s so that you pay nothing monthly for a couple of years, because you would KNOW you would be getting back more than your liability.
Make more sense?

[Sleeplvr]

Pikea

Just pull out your 1040 and that will tell you how much you've paid in for the previous year. You can also look at your current pay stubs to see out much is being paid in taxes weekly or monthly and you can make a guesstimate in how much you will be paying in this year. That is what you should be looking at instead of whether you owe or get a refund on April 15th.

[PhilaShay]

i found this Adoption Loans -- Affording Adoption maybe it will help?