Family & Adoption Services

Catholic Charities is aware of the many expenses involved in an international adoption, and wishes it was not this way. Unfortunately, we have no control over costs, other than our home study fee which has not increased since we first developed our international adoption program.

Catholic Charities, as well as many placing agencies, is a non-profit organization. Our mission is to find families for children living in impoverished countries throughout the world. Often families who wish to pursue an international adoption feel challenged by the cost. The good news is that families from all economic circumstances have managed to adopt internationally by locating available resources and creating unique fundraising opportunities.

AVAILABLE RESOURCES:

• FEDERAL ADOPTION TAX CREDIT: allows adoptive parents to claim a tax credit on their federal income tax return for specific adoption expenses. For 2009, the maximum adoption credit has increased to $12,150. Also, the maximum exclusion from income for benefits if your employer has an adoption assistance program has increased to $12,150. These amounts are phased out if your modified AGI is between $182,180 and $222,180. You cannot claim the credit or exclusion if your modified AGI is $222,180 or more. Qualified expenses are subtracted dollar for dollar against your tax liability and as such is more advantageous than a tax deduction. For example, if you owe $4,500 in federal taxes and have $3,000 in qualified adoption expenses your tax bill is reduced to $1,500. If your tax bill is less than your adoption credit you can carry forward the difference for up to 5 years. IRS guidelines are available at http://www.irs.gov/publications/p17/ch37.html#d0e78233, http://www.irs.gov/taxtopics/tc607.html. Adoptive parents often consult a tax expert to better understand how this tax credit will affect them.
• EMPLOYEE ASSISTED BENEFITS: Adoptive parents may receive an income exclusion for employer provided adoption assistance for specific adoption expenses.

  The same qualified expenses can not be claimed as both an exclusion and a credit. It is advisable for parents to consult a tax expert to determine the financial effects. Visit www.adoptionfriendlyworkplace.com.

  Employee assisted benefits may include direct reimbursement at the time of placement; paid leave in addition to vacation time; sick leave and personal days; or unpaid leave.

• ADOPTION LOANS AND GRANTS are available with additional consideration given to parents adopting special needs children. For more information visit www.nafadopt.org; www.achildwaits.org; www.giftofadoption.org.
• PERSONAL SAVINGS, loans, and donations from relatives and/or friends. Cash advances from credit cards; second mortgages; home equity loans; borrowing from life insurance policies; 401(k) or pension plan.
• FUNDRAISERS such as neighborhood garage sales or community based events.

Catholic Charities
touches more than
80,000 lives annually.