Here are a few of the financial benefits of adopting a child from foster care. But, before anyone gets confused I want to clarify a few things.

Foster care is not a place to make money! In some other countries, it is considered a job that you are paid to do. Here in the US, it is a passion project that usually ends up costing you a few dollars every month.

So before you start reading this article, please realize that the financial benefits you receive will help to buffer some of the costs you will incur. However, you are not going to “make money” or get rich by fostering or adopting.

If your heart is burning to help the helpless and you choose to look at the foster and adoption system, be sure to utilize the benefits that are available to help you and your child!

Financial Benefits of adoption a child from Foster Care 

• Adoption Tax Credit
• Practically Free Adoption
• No Agency Fees
• Medical Insurance

Adoption tax credit

The Federal Government’s Adoption Credit and Adoption Assistance Programs are detailed on their website. I do not claim to be a tax professional (I pay someone to do my taxes so I don’t need to be!).

The basics are that you can receive a tax credit for up to $14,080 if you adopted a child this year. There is an income cap applied to this benefit. If you make more than $251,160 per year, you may not be eligible for the tax credit.

As always, consult your tax professional to understand how this affects your personal situation.

Practically free adoption

Years ago when my wife and I first looked at adoption, I was blown away at the costs that could be associated with adoptions, especially international adoptions. That is when we felt led towards foster care. Our involvement in the foster care system led to several adoptions down the road.

I was equally surprised that the cost of adoption from the foster care system in the State of Missouri was practically free! The state covers most of the legal and filing fees associated with the process. 

No Agency Fees

If you look into adoption through an adoption agency, you will find that adoption agency fees are not cheap! According to this article by adoptioninstitute.org, you will see that the fees are roughly $36,000 – and this article was written in 2016.

Medical Insurance

Health insurance is a hot-button issue in the US right now. With the rising cost of insurance, it is always prudent to consider your potential costs.

In the state of Missouri (where my family resides), the state will provide medical care for children adopted through the foster care system. The medicare system has its flaws, drawbacks, and difficulties but it is nice to know that if you need health care assistance for a child it will not be a barrier to adoption.

However, most (if not all) insurance policies will cover an adopted child the same way they cover your biological children. For us, it was not even any additional costs to cover them. I already paid for family coverage and the added number of children had no impact on the cost.

As an added benefit, they are still eligible to use the state health insurance on top of any private insurance that you may already have for them.