Adoption Benefits

Many employers offer benefits, loans, and leave time to adopting parents. Learn if your employer has adoption benefits and how they work by calling your human resources department. Military adoption benefits are also available (see below).

For a complete list of employers and the benefits that are offered to adopting parents, from unpaid leave to reimbursement and paid leave, visit Adoption and the Workplace from the National Adoption Center.

According to the Dave Thomas Foundation, more than 50 organizations have newly established or enhanced their adoption benefits in the past year. To check out a listing of these companies on their website, Click here 

Want to help your employer get on board? To adapt the sample letter to ask that benefits be introduced or expanded, Click here

About the Adoption Tax Credit
The value of the adoption tax credit has been increased for 2010 as part of the health care reform bill (Patient Protection and Affordable Care Act, P.L. 11-148). Adoptive parents will now be  able to claim a maximum of $13,170 for adoption expenses on their federal income tax returns. The tax credit phases out for taxpayers with high-modified adjusted gross incomes.  This credit will now be a refundable credit. Refundable credits can produce tax refunds that exceed the amount of money paid in through withholding and estimated taxes. Non-refundable credits, by contrast, can at most reduce a person's federal income tax liability to zero.

Qualifying expenses include necessary adoption fees, court costs, attorney fees, traveling expenses, and other expenses directly related to the adoption. Adoptive parents who plan to claim the credit should file Form 8839, titled Qualified Adoption Expenses, and attach it to Form 1040.

The adoption credit will remain a refundable credit for 2011 as well, and the 2011 maximum dollar amount will be indexed for inflation. For more information see page 904 of the full legislation, Click here

Adoption Benefits for Military Personnel
Military personnel are eligible for a one-time adoption expense reimbursement of $2,000 as well as the potential for an annual reimbursement. For more information, visit http://military.adoption.com/army/military-adoption-benefits.html  (Source: www.Adoption.com)