How Can I Afford a Private Adoption?
Written by: Barbara Thornell Ginn (FL & OH)
Routinely, I speak with families who wish to grow their family through private adoption, but the financial barriers create obstacles to seeing this dream come to fruition. At Foster + Bloom Family Formation Law Group, we strongly believe finances should never prevent family formation/growth.
The great news is that there are a significant number of financial resources available to assist hopeful adoptive families.
The below list is not intended to be exhaustive, and by listing resources here, we are not guaranteeing that your family is qualified or will be selected to receive the applicable resource. We encourage you to research additional resources that may be available in your state/local area as well.
Utilizing Federal and State Tax Credits
A Federal Tax Credit may be available for adoptions (i.e. special needs and non-special needs adoptions), which means that you may be eligible to receive a credit on your tax return for monies spent on Qualified Adoption Expenses. We encourage you to speak with a tax professional to determine if your family may be eligible to receive the benefits of the federal adoption tax credit.
According to the IRS, Qualified Adoption Expenses include: reasonable and necessary adoption expenses, including adoption fees, attorney fees, court costs, travel expenses (including meals and lodging) while away from home, and other expenses directly related to, or for the principal purpose of, the legal adoption, and expenses paid before identifying an eligible child, such as home study fees. For adoptions finalized in 2026:
- The maximum Federal Adoption Tax Credit will be $17,670 per child;
- The maximum credit will begin to be phased out when the adoptive parents’ Modified Adjusted Gross Income (MAGI) for 2026 is greater than $265,080, and the adoptive parents will not be entitled to any credit if their MAGI is equal to or greater than $305,080; and
- The refundable portion for adoptions finalized in 2026 is $5,120.
Exploring State Tax Credits
State Tax Credits may be available, depending on your state of residence. We encourage you to speak with a tax professional to determine if your family may be eligible to receive the benefits of a state adoption tax credit.
Maximizing Workplace and Employer Assistance
Employer Adoption Reimbursements. Reimbursement Programs, including “Match” grants may be available to adoptive parents through their employer. Check with your Human Resources Department to determine whether some type of adoption reimbursement is available to you. You should also speak with your employer in advance of any planned parental leave so you know what to expect monetarily while on leave.
Keep in mind that if you qualify to take leave under the Family Medical Leave Act, this does not mean you will be financially compensated for your leave (only that your position will be held for you and not filled while you are on FMLA leave).
The Dave Thomas Foundation offers some amazing resources for you to provide to your employer to increase your employer’s awareness in this area and to aid your employer in implementing employee benefits pertaining to adoption. The Foundation even recognizes organizations that are adoption-friendly.
Funding Opportunities Through Adoption Grants
Adoption Grants may be available. Federal, state and local adoption grants may be available, based upon your unique circumstances. The following alphabetical list is not intended to be exhaustive, and we strongly encourage you to research other grant opportunities that may be available to you.
Some grants may require specific faith/religious affiliations, some may require the child already be placed in the home, some may require the child not yet be placed in your home, and some may have other requirements. We encourage you to read all applicable qualifications before submitting your application.
- Forever Home Foundation
- Gift of Adoption Fund
- Help us Adopt
- Lifesong International
- Show Hope (previously called Shaohannah’s Hope)
Local Grants and Community Adoption Funds
Local grants may be available through an adoption fund at your church or in your community. Ask around to see if any of your contacts are aware of an applicable adoption fund to which you can apply.
Furthermore, consider being proactive and actually starting an Adoption Fund at your church or in your community to assist other adoptive parents who are interested in adoption but struggling to meet the financial requirements associated with the particular type of adoption in which they are interested. A grant from an Adoption Fund could make all the difference!
Specialized Support for Military Families
Service Members Adoption Reimbursements may be available for active-duty personnel. In this situation, the U.S. military reimburses up to $2,000 per child and $5,000 per calendar year. In order to qualify, the adoption must be arranged by a qualified adoption agency or source authorized under state or local law. Further, private and stepparent adoptions must be finalized in a US court.
Additionally, military parents may be entitled to receive additional benefits under the military’s Exceptional Family Member Program.
Post-Adoption Tax Benefits
Tax Dependency Exemptions are available for adoptive children and biological children alike under the Child Tax Credit, provided the child lived with the family for more than half of the tax year (or more than half of their life if born during the applicable tax year) and other criteria are met.
Financial Structuring and Loans
Personal Loans are often available to adoptive parents through life insurance policies, banks, and credit unions. It is common for families to obtain a short-term loan, which is then paid off upon receipt of your tax return monies or with employer reimbursement monies once the adoption is finalized.
Keep in mind, however, that it could take months, or even well over a year, to receive your tax credit monies (i.e. you could receive placement of your adopted child on July 1, 2026 which means you cannot finalize your adoption in Ohio until at least January 2027.)
We always caution families not to over-extend themselves by borrowing money but to ensure that the monthly payment for any adoption loan fits easily into their budget in the event it takes quite a while to receive the anticipated funds to pay off the loan.
Walking Hand-in-Hand on Your Unique Path to Family
While the financial roadmap for private adoption requires careful planning and a thorough review of available benefits, the journey is one you do not have to walk alone. Strategic use of tax credits, employer benefits, grants, and short-term financing can help lift the financial barriers and bring your dream of expanding your family within reach.
If you need experienced guidance navigating the legal complexities of private adoption and securing your family’s future, the team at Foster + Bloom Family Formation Law Group is here to support you every step of the way.
Why I Practice in Family Law: "Changing the trajectory of even one child's life is an indescribable feeling."Meet the Author
Barbara Ginn,
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