The total cost of an independent adoption usually ranges between $18,000 and $26,000. However, these costs can vary widely based on the complexity of the case, the birth mother’s financial need, and the adoptive parents’ eligibility for the adoption tax credit.
In Oregon and Washington, adoptive parents are permitted by law to reimburse birth mothers for expenses reasonably related to the pregnancy, birth, and post-natal recovery. These expenses may include living costs (rent, utilities, and food), uninsured medical expenses, transportation, maternity clothing, counseling, and attorney fees.
The financial assistance needed by a birth mother will depend on her individual circumstances. Many birth mothers have medical coverage but need assistance with other expenses, while others will need to have their medical costs paid as well.
The attorney fees for an adoption may increase in a number of circumstances, including the following:
Many families are eligible to take advantage of an adoption tax credit for expenses incurred or paid during the adoption of a child.
According to the IRS, “The adoption tax credit offsets qualified adoption expenses, making adoption possible for some families who could not otherwise afford it.” Generally, you may qualify for the adoption credit if you adopted a child and paid qualified expenses relating to the adoption. If you attempt to adopt a U.S. child, you may be able to claim the credit even if the adoption does not become final.
For the 2015 filing year, adoptive parents with a modfied adjusted gross income (MAGI) over $201,010 are eligible for a partial credit. Adoptive parents with a MAGI of more than $241,920 may not claim the credit.
For more information, please visit the IRS website or consult an accountant: https://www.irs.gov/taxtopics/tc607.html