How much does it cost to adopt a child?

Choosing to adopt a child is a major life decision. And for adoption hopefuls such as yourself, it’s important to know the cost of adopting before you go too far in the process.

You probably know that the cost of adoption can be high. (Yes, that’s true.) But just how much is it to adopt?

Like most things, the answer isn’t cut and dry. It truly depends on your situation and how you choose to adopt. Check out the information below so you have the cost estimate needed to make the best decision for you and your family!

What are the options for adoption?

The Dave Thomas Foundation for Adoption lists four ways to adopt a child, with the following cost estimates:

1. Foster care adoption via public agency: $0-$2,500
2. Private agency adoption: $5,000-$40,000+
3. Independent adoption with attorney: $8,000-$40,000+
4. International adoption: $15,000-$30,000+

What are some of the misconceptions about the cost of adoption?

With foster care adoption, the biggest misconception is that it’s just as expensive as private adoptions. In fact, the opposite is true, says Rita Soronen, CEO of the Dave Thomas Foundation for Adoption.

“The state or county that holds custody of the child covers the vast majority of the cost that might otherwise be embedded in adopting,” Soronen explains. She also added that much of the cost of foster care adoption is reimbursable. 

As for private, independent, and international adoptions, Soronen says the biggest misconception is that the upfront cost is the only expense to pay. Truth is, there are plenty of unexpected costs that come up when adopting.

What are some of the unexpected costs of adoption?

The biggest cost of adoption is the payment going to the agency. However, there are other expenses to be ready for when considering the total cost of adoption:

• Legal expenses: There’s a lot of paperwork that goes into filing for adoption which requires the services of an attorney.
• Travel costs of visiting the child: This is particularly noteworthy if you choose to adopt internationally. How often will you go visit the child? Will you need the services of a translator? And once you’re there, you’ll have lodging, transportation, and food expenses. 
• Doctor’s visits: As part of the adoption process, you’ll need to prove your physical — and sometimes emotional — health through statements from a doctor.
• Home studies: Every state requires prospective parents to go through a home study after formally applying to adopt. The cost of the study varies greatly depending on the adoption option you choose.
• Financial assistance to child or parent: Once you decide to adopt, you might provide financial assistance to help support the child you’re adopting until the adoption process is complete. Or, if you’re adopting from a pregnant mother, you might provide financial assistance to her to help with doctor’s visits and other expenses.
• Post-placement visits: After the child is placed in your home, you’ll have follow-up visits with social services to help both you and your adopted child with the transition.

Furthermore, there’s also the expense of preparing your home for a child. Clothes, car seats, diapers, high chairs — it’s hard to believe, but these expenses can be forgotten when adopting since you’re so consumed with the other parts of the process. Beyond that, baby showers aren’t as common for adoptive parents as they are for those who get pregnant, which means you might miss out on receiving some of these essentials as gifts.

What financial assistance is available?

Yes, the cost of adopting a child can be high — but you might not have to cover all the expenses on your own. You could be eligible for financial assistance through one or more of the following programs:

• Adoption subsidies: Parents who adopt from foster care may be eligible for federal or state subsidies if the adopted child has special needs. The subsidy can cover costs related to medical care, counseling, tutoring, and others.
• Grants/loans: AdoptTogether, A Child Waits Foundation, and Gift of Adoption Fund are just three of the organizations that provide financial assistance to those who adopt.
• Employer benefits: Check your benefits package to see if your employer offers any reimbursement for adoption expenses. For instance, Citizens offers up to $24,000 in reimbursement to employees who adopt.
• Tax credits: The federal government offers an adoption tax credit for the year in which the adoption was finalized. For adoptions finalized in 2019, the tax credit maximum is $14,080 per child. This tax credit cannot be used as a refund; however, it can cover any tax liabilities you may have in the year you adopt and the subsequent five years. Speak with a tax advisor to learn more about this tax credit.
• Military reimbursements: Active-duty personnel can receive up to $2,000 each calendar year to cover qualified adoption expenses. That number climbs to $5,000 if more than one child is adopted.
• HELOC: A home equity line of credit (HELOC) could also help, thanks to its relatively low interest rate and the ease with which you can access the cash you need, when you need it, over a 10-year period.

Adoption may be more affordable than you think

At the end of the day, the cost of adoption mostly boils down to how you approach it. If you adopt a child from foster care, the cost is much less expensive than if you adopt through a private agency.

However, Soronen says that the post-adoption costs can be a barrier for people, particularly those considering the adoption of an older child who don’t have money saved for college when that time comes.

Fortunately, there are programs that help alleviate some of these concerns. “A lot of states have tuition waivers for children who are adopted at age 13 or older, or other scholarship programs for kids who were in foster care for a period of time and were adopted,” Soronen explains.

Still, the adoption method you choose should go beyond the cost. Each has its own list of pros and cons, so do some research on those to find out which method makes the most sense for you and your family.

Soronen’s biggest message to those looking to adopt is hopeful. “Considering the cost of adoption is a critical thing to do, but because there are so many paths and roads to assistance, I’d hate for someone to have it be a barrier to adopting until they have all the information in hand and understand all the options for the kinds of adoptions that exist for expanding or creating a family.

“Information is truly power,” she continues, “and understanding what it costs to adopt, what it costs to raise a child, and really doing some deep dive research before you jump into it is so important.”

Are you ready to adopt?

Depending on your financial situation, a Citizens HELOC is considered a flexible option to grow your family. Before you make a decision, talk to a financial advisor who can help you make the right decision before adopting a child. To learn more, please call 1-800-922-9999, visit us online, or Ask a Citizen at your nearest Citizens branch.