The purpose of this blog is to hopefully dispel misinformation about the costs to adopt a child in Michigan. Some example of misinformation on the internet include Intuit’s website, citing U.S. News and World Report, that says it can be $50,000.00 and upwards.1
The consumer should be given access to correct information. It simply does not costs $50,000.00 to adopt a child at Williams Law Offices. It does however cost much more to adopt through an adoption agency such as Bethany Christian Services and others. These types of expenses are unnecessary for adoptive parents to bear.
In a direct placement, relative adoption, or direct placement adoption attorney fees are around $3,000.00 to $5,000.00 based on the hourly rate of $250.00 per hour. There is a home study that can cost up to around $3,000.00 as well.
There is help in paying for an adoption through the Adoption Tax Credit. The amount for 2021 is $14,440.00 in “qualified expenses” which includes attorney fees and the home study, along with travel expenses and some others. The tax credit is nonrefundable which means you will receive it against taxes you owe. It can obviously create a much larger refund. The tax credit begins to phase out at $216,660.00.
It is expected that the Adoption Tax Credit will be enacted into each years tax legislation as it has broad bi-partisan support.
If you are looking to adopt a child we hope this information has been useful and encouraging. We hope that it will help you to begin your journey today.