M6 – Governmental Adoption Help & Subsidies

Governmental Adoption Help & Subsidies

Adoption Assistance Program
The Federal Adoption Assistance Program (AAP) provides funds to states to facilitate the placement of children with special needs or involved with circumstances make it difficult to find adoptive families. Each state manages it’s AAP subsidies so you’ll need to access State Contacts and Rules for Adoption Assistance Programs. If denied, there is an AAP Appeal Process

Federal Tax Credit
There is a federal tax credit of over $13,000 for families who adopt. This credit provides opportunity for families to recoup some of their adoption expenses up to the maximum amount through a reduction of their tax liability. Currently, the IRS is using Form 8839 and provides detailed instructions for you or your tax preparer.
 

State Tax Credits

Some states offer additional tax credits and exclusions as well. Currently these include Arizona, California, Georgia, Kansas, Mississippi, Missouri, Montana, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, South Carolina, Utah, West Virginia and Wisconsin. Look in your state’s tax code or ask your tax preparer for more information.