Many people do not consider adopting or fostering a child because they assume that it would be too expensive for them to take on the responsibility of having another child in their home. Most states provide subsidies to assist with the expenses of taking care of a child. These subsidies are generally not considered as taxable income.
In my state, the payments are made one month in arrears. For our family, there was an added frustration in that the money was paid through an adoption agency and they sometimes held the money for an extra month.
An additional problem in our state is the fact that the monthly reimbursement for foster care is more than the adoption subsidy. This rule actually prevents some children from being adopted.
For many families, the health care issue is crucial. Many of the children that are eligible for adoption have health issues, sometimes very serious ones. For instance, we have adopted five boys. One has a heart condition that will necessitate at least one surgery in the future. Another has ADHD, and three of them have significant asthma issues. Fortunately, our state provides Medicaid until the age of 18 for children like ours. That is good in that the heart surgery alone could easily cost more than $50,000.
A major disadvantage to Medicaid is that most doctors and dentists do not take it, so you have to really search for a provider. Many times the provider that is found is a significant distance away. Also, in some instances, it is hard to get the best care available with Medicaid.
In addition, your state may have some special benefits. For instance, in Texas, a child who grew up in the foster system or was adopted out of the foster system is eligible for four years free tuition and fees at any state chartered college or university.
Many states also provide post adoptive services which pay, up to specified limits, for such things as babysitting, camps, and family counseling. These services allow the family to focus on the development of their children, while easing the financial burden.
For some families, there are also federal income tax benefits. If the child or children qualify as “special needs,” the family may be eligible for a $10160 tax credit for each child.
Finally, the reader should not conclude that fostering or adopting could be a good source of income, perhaps as a business. These resources are meant to merely assist the family. The work is too hard and the money is insufficient for someone without the love, inspiration, and dedication to do the work.
Related Blog:
The IRS Adoption Tax Credit and Special Needs Adoption Information