[hopefulmom2be]

We began the adoption process for a waiting child earlier this year. We are currently in the home-study phase. We were just told by the adoption agency that due to budget cuts, that children will no longer be on Medicaid until they are 18 and most counties are doing away with subsidies. I'm ashamed to even admit this, but I was counting on the financial assistance. Now, I'm not sure if we can afford to have a child, considering high insurance premiums and daycare costs, but feel obligated to go on because of how much we have already invested. Has anyone in Colorado or any other state faced this and do you have any advice?

[Scrapsathome]

Are you going through county foster care or a private agency? We're in Adams county just north of Denver and we were at a foster parent support group tonight. I know you posted a month ago, but I thought someone should respond on here so that no one gets scared away from Colorado. In our meeting tonight they said that foster children in CO are covered by medicaid until they are 18 even if they get adopted. If we want we can place them under our insurance and have medicaid as secondary or vice versa.

AND there are still subsidies, but you work that out when you begin the actual adoption paper work. You have to request subsidies and they have to be special needs, but that can mean they are over 7 or part of a sibling group, not necessarily a major need.

Also, if you have them longer than anyone else during the year, even while they are foster kids, you can claim them for tax purposes to receive the child tax credit. So if they were moved from home to home all year long and no one had them longer than two months, but you had them for 5 months, you can claim them.

There is also a separate reimbursement for childcare if both foster parents work or for single foster parents who work.

Jess

[hopefulmom2be]

We are going through a private agency that contracts with county social services statewide. We know we will continue to receive foster care payments and Medicaid until the adoption is finalized, but we've been told that once the adoption is final, any payments will be drastically reduced and possibly eliminated and there is a good chance that we will also lose Medicaid, unless there are major special needs. Things are looking better for us though. I'm not so freaked out anymore. Thanks for responding.

[Scrapsathome]

This is not just a Colorado issue. Medicaid stays with a foster child even after they are adopted no matter what state they move to until they are 18, or possibly 21 if they have mental delays. This is a federal issue. So it's not a matter of "need".

The adoption subsidy depends on the child's needs and YOU working out the agreement with the agency the child comes from. Don't sign the agreement until you think it is right. They aren't going to suddenly take your child away at the final stage of adoption over the subsidy agreement. It's called an agreement because both sides work it out until they agree. A special needs child will automatically have access to a subsidy, but if the child is very young and has no medical, physical, or phsychological issues what-so-ever, you probably won't get a subsidy. The county should discuss that with you before they ever even place the child. They told us that if there are two basically identical sets of foster parents available for a match with a young child with no special needs, they will pick the family that says they don't need a subsidy for that child.

Jess

[Boulderbabe]

I haven't heard anything about loss of Medicaid eligibility. (But frankly, Medicaid sucks---if you can get your kids on your private insurance, do it).

I did not recieve a subsidy when I adopted my son. Or rather, I have a subsidy of $0.00---we can raise it if problems come up later.

[Boulderbabe]

Also, do you know about the adoption tax credit? If your agency classifies the child as special needs (and that's almost all of them), you get $10,900 in tax credits. It's a HUGE help.

[Scrapsathome]

I understood that the adoption tax credit is for the year that you actually legally adopt only. Right? It's not like a yearly thing. Is it really $10,900? I thought it was just a flat $10,000. I was thinking it would make a great college fund starter.

[DianeS]

Originally Posted by Scrapsathome

I understood that the adoption tax credit is for the year that you actually legally adopt only. Right?

You earn the credit in the year you adopt, and can apply it to your taxes owed in that same year. However, most people don't owe so many taxes that they'd use the whole credit at once. So, any remaining credit can be carried over for a total of five years. If you use it all before the five years are up, you're finished with that credit. If you use it all five years and still haven't used it all, you're still finished with the credit.
Make sense?

Is it really $10,900? I thought it was just a flat $10,000.

It was $10,000 the first year it was given. It's increased for inflation each year. It's somewhere around $10,900 this year, although I'm not certain of the exact change. I'm sure it's on the IRS site if you're curious.

[scandi]

In regards to medical and subsidy - if the child is Title 4E eligible then both are federally mandated. If the child is not Title 4E eligible then it is up to the state and they can choose what and how much they subsidize including medical.