1. Use your tax refund. The federal tax credit for qualifying adoptions is over $13,000. This is a tax credit, which in essence means you will receive every dollar back. Of course, this can be rolled over for up to five years and you will only receive credit for your actual qualifying adoption expenses. Most states also have an adoption credit, so make sure you check with your CPA on that as well. When you receive your tax refund, use every dollar of it to pay back the adoption loan. You should not be expecting this money and it should not be accounted for in any other place. That way, you can use every dollar you receive to pay back the adoption loan that much faster.

2. Fundraise. If you didn’t fundraise while “waiting” for your adoption, you can do it now that your child is here. This can get a little tricky and to some does not feel “right” asking for donations or money when you have a baby because if you could get pregnant and have a baby the “natural” way you wouldn’t be asking people for money or donations. Which I totally get, but if you are open to the idea, use it. We used fundraising while waiting for our adoption with www.ordinaryhero.com. You could also have a large garage sale, hold a benefit, use online sites such as gofundme.com, etc. Any of the money you earn during put directly on the adoption loan. That way you can pay the loan off as soon as possible. 

3. Create a budget. If you didn’t already create a budget while waiting for your child, now is the time. Children are extremely expensive and so is an adoption. This is a very important tool for every family to use. We keep track of all of our income and expenses in an Excel spreadsheet. You could use the good old paper and pencil method as well! But keep track of what is coming in and what is going out. At the end of every month, any extra money you have left over you should put directly on the adoption loan, again, that way paying off the loan as soon as possible. Just like the tax refund, any other “unexpected” money should be put directly on the adoption loan. You don’t want to have the extra debt hanging over your head forever as a constant reminder, get it paid off!

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The Adoption Assistance and Child Welfare Act of 1980 was created by Congress to provide federal adoption subsidies to help encourage placement of special needs children. Children can receive federally-funded adoption subsidies under Title IV-E of the Child Welfare and Adoption Assistance Act of 1980, or they can get state-funded adoption subsidies (non-Title IV-E) based on each state’s guidelines.

A child can be deemed to have special needs and be eligible for an adoption subsidy if they meet specific guidelines. These guidelines are set by each state. Some of the guidelines include but are not limited to the age of the child, a sibling group who are being adopted together, medical disability, mental disability, emotional disability, family history that the child may need special medical treatment; or the child’s ethnic group.

Eligibility for an adoption subsidy also depends on the state (each state is different) making every effort to make sure it is impossible for the child to remain with the birth parent(s). The state must also make every effort to find parents willing to adopt the child without receiving a subsidy. An exception would be unless such efforts would not be in the child’s best interests. 

A special needs child must also meet at least one of several other eligibility conditions which include but are not limited to the following; be in foster care for at least 60 months, the child is entitled to social security benefits, or the child is born to a minor child who is currently in foster care. Prior to 2018 the child’s birth family must have met an income requirement in order to qualify for the adoption subsidy. Now, regardless of the birth parent’s income, all children who are eligible for subsidies due to special needs will be eligible for subsidies if they are adopted from foster care.

There are a few ways to receive adoption subsidies.One way is to receive a monthly maintenance payment. This amount is determined on a case-by-case basis and can be reviewed/changed if the adopted child’s needs change. Sometimes adoptive parents are eligible for a one-time reimbursement for the cost of adopting a child with special needs. This amount is regulated by the federal government as well as each state. Also, children who qualify for the subsidy is also eligible for medicaid. Sometimes if they are covered by a state-fund adoption subsidy, it is up to that state whether or not the child is eligible though.  

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