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  • Jennifer "Jay" Palumbo

Affording Adoption and The Benefit of the Tax Credit


Photo by Annika Marek-Barta on Unsplash

When you walk down the infertility options path, one of the many things you hear quite often are the two words, "Just adopt!" But, unfortunately, as I've learned over the years, one of the misunderstandings of that statement implies that adoption is super easy or, somehow, less expensive than pursuing fertility treatment.


The truth is adoption is quite often more expensive than IVF. Adoption costs can be quite difficult to pin down as there are many variables to consider but overall, an adoption agency can cost anywhere from $5,000 to $30,000. International adoption costs can be higher.

Thanks to the power of advocates, Congress preserved the Adoption Tax Credit in 2017 when proposed tax reform would have eliminated it. Congress should now restore refundability to the credit to help even more children in need of a family. The Adoption Tax Credit Refundability Act (S.1156/H.R.3031) makes that possible.


Advocating for the Adoption Tax Credit

One group regularly advocating for the Adoption Credit is RESOLVE, the National Infertility Association, and individuals working together to support adoption and the tax credit. Their website explains that nearly 112,000 children in U.S. foster care are waiting to be adopted and countless orphaned and abandoned children worldwide. For many, this credit can make or break their journey to build their families, and I don't think it's an exaggeration when I say that it could help save the lives of kids in need.

It's important to note too that research supports how financial assistance can encourage adoption and create better outcomes for children. According to Jim Casey Youth Opportunities Initiative, outcomes for children who remain in foster care are dire and come with high costs:

  • Only 58% graduate high school by 19

  • <3% will earn a college degree

  • 1 in 5 will face homelessness

  • 1 in 4 will be involved in the justice system within two years

  • Only 50% will be employed by 24

  • 71% of young women are pregnant by 21

  • 1 in 4 will experience PTSD

In addition, as per R.P. Barth, C.K. Lee, J. Wildfire, and S. Guo titled, "A Comparison of the Governmental Costs of Long-Term Foster Care and Adoption, "Social Service Review (March 2006), an adoption tax credit saves the government between $65,000 to $127,000 for each child who is adopted rather than placed in long-term foster care.

Of course, when you adopt, whether it's domestic, international, or through foster care, it's never easy as the dreaded "Just adopt!" but having this adoption tax credit can help make the process more financially attainable. It's a bipartisan, pro-family benefit that has helped many families become exactly that: families.


Are You Pursuing Adoption?

If you are interested in adopting or someone who cares about helping others build their family through adoption, and you're concerned about the costs, EggFund can help. We can assist in making adoption a viable family-building option by offering you a financing option. Click here to learn more.

Every child deserves a home, and if this credit and our lending platform help bring them one step closer to being adopted, we support it!


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