{"id":1263,"date":"2022-08-16T14:59:53","date_gmt":"2022-08-16T18:59:53","guid":{"rendered":"https:\/\/floridaadoptionattorney.com\/?p=1263"},"modified":"2022-08-16T15:00:40","modified_gmt":"2022-08-16T19:00:40","slug":"navigating-adoption-cost","status":"publish","type":"post","link":"https:\/\/floridaadoptionattorney.com\/blog\/navigating-adoption-cost\/","title":{"rendered":"Navigating the Cost of Adoption"},"content":{"rendered":"
Adoption costs in the U.S. vary widely<\/a> and can cost anywhere from $0 to $50,000 or more, depending on the type of adoption.\u00a0 Money to help defray the cost of adoption is available from both governmental and private-sector sources. These are the major ones:<\/p>\n Federal and state governments offer adoption\u00a0subsidies<\/a>\u00a0for children adopted from foster care. To be eligible, the child must meet certain criteria, which can vary from state to state. \u201cThe term \u2018eligible\u2019 most frequently refers to children who are older; are part of a sibling group; or have specific physical, emotional, or developmental needs.<\/p>\n The federal government provides a tax credit to adoptive parents.\u00a0Eligible expenses include:<\/p>\n The adoption tax credit is subject to income limits. In 2022, it begins to phase out if the taxpayer\u2019s\u00a0modified adjusted gross income (MAGI)<\/a>\u00a0is $223,410 or higher and it phases out entirely at $263,410. The maximum tax credit for 2022 is $14,890.<\/p>\n There are many private foundations and other organizations that offer grants and loans to adoptive parents. Please check the financial resources tab of our website for a detailed list. We helped our clients obtain over $100,000 in grants last year.<\/p>\n A growing percentage of companies, the military, and governmental bodies have adoption assistance programs. These programs may not only provide financial assistance but also other benefits, such as parental leave.<\/p>\n Your 401(k) plan<\/a>\u00a0at work or an\u00a0individual retirement account (IRA)<\/a>\u00a0on could also be a source of funds. Normally, if you\u2019re under age 59\u00bd, any withdrawals you make will be subject to a 10%\u00a0early withdrawal<\/a>\u00a0penalty on top of the income tax you owe.\u00a0Since the passage of the SECURE Act in 2019<\/a>, however, adoption is one of the exceptions to the penalty.<\/p>\n Under current tax law, individuals can take a penalty-free distribution of up to $5,000 to pay for adoption expenses \u201cduring the 1-year period beginning on the date on which the child of the individual is born or on which\u00a0the legal adoption by the individual of an eligible adoptee is finalized.\u201d<\/p>\n The law also specifies that the adoptee must be an eligible adoptee, which the IRS defines as \u201cany individual (other than a child of the taxpayer\u2019s spouse) who has not attained age 18 or is physically or mentally incapable of self-support.\u201d<\/p>\n Under these rules, a married couple could take tax free distributions totaling $10,000.<\/p>\n <\/p>\n ———————————————————<\/p>\n<\/div>\n Contact us<\/a> for more ways an adoption law firm can help balance the cost of adoption<\/a>.<\/p>\n Email us at info@jtatelaw.com<\/a>.\u00a0 Call us via 800-874-4916<\/strong><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Navigating the Cost of Adoption Adoption costs in the U.S. vary widely and can cost anywhere from $0 to $50,000 or more, depending on the type of adoption.\u00a0 Money to help defray the cost of adoption is available from both governmental and private-sector sources. These are the major ones: Federal and state adoption assistance for … Continue reading Navigating the Cost of Adoption<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":1266,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25,9,18,13],"tags":[17,8,28,22,19,21],"sk_formats":[46],"class_list":["post-1263","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-adoption","category-adoption-attorney","category-adoption-law","category-legal","tag-adoption","tag-adoption-attorney","tag-adoption-journey","tag-adoption-law","tag-adoption-lawyer","tag-florida-adoption-attorney","sk_formats-articles"],"yoast_head":"\nFederal and state adoption assistance for children in foster care<\/u><\/h4>\n
Federal tax credits for adoption<\/u><\/h4>\n
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Grants and Loans for adoption<\/u><\/h4>\n
Employer-sponsored adoption benefits<\/u><\/h4>\n
Tapping your retirement accounts<\/u><\/h4>\n