Finances and Subsidy

There are several ways that families may be able to get financial help with adoption.

Adoption Assistance | Federal Adoption Tax Credit | SSI and Social Security | Federal Policy Announcement

Adoption Assistance

This is a financial payment offered by the State to help with the cost of adopting a child with special needs. The rules for this are extremely complex and vary from State to State.

Federal Adoption Tax Credit

This is a one time tax credit offered by the Internal Revenue Service to help defray the costs of the adoption process itself. Nacac has an excellent section describing the credit in detail. The IRS documentation is available here.

Tax Credit FAQ's are available here

Tap's explanatory brochures are available for 2015, 2014,   20132012, 2011, and 2010

Adoption Subsidy Fact Sheets

North American Council on Adoptable Children has compiled a number of fact sheets focusing on different aspects of adoption subsidy.

SSI and Social Security

Casey Family Programs have developed a guide to Supplemental Security Income (SSI) and Social Security Benefits for Children and Youth in Out-of-Home Care . This Guide is intended to provide basic information about the rights of children or youth in out-of-home care to receive benefits under these two programs. In addition, this Guide reviews the basic application requirements, eligibility rules, and appeal procedures for SSI and Social Security and offers practical tips for effective advocacy. The Guide also describes the unique roles and responsibilities of state and county child welfare departments regarding the management of SSI and Social Security benefits. Finally, special issues of interest to foster parents, adoptive parents, resource family relatives, and older youth in care are reviewed.

Download the guide in PDF Format

Federal Policy Announcements

The Federal Government periodically issues Policy Announcements that clarify the regulations . The following links will take you to the exact text of the announcement.

PA0101 was issued on 23rd of January 2001 and was a major announcement withdrawing some previous policy interpretations and issuing new ones relating to eligibility for children adopted through private agencies, and clarifies several issues associated with eligibility for the Title IV-E Adoption Assistance Program.

IM-01-08 was issued on November 6th 2001 and amends PA-01-01 relating to children voluntarily relinquished to private agencies.

Research the Child Welfare Policy Manual. This manual updates and replaces the Policy Announcements and PIQ's that were used previously.