I got a lot of comments on the last post, so I thought I'd elaborate a bit.
First of all, the tax credit isn't really $10,000; it's increased every year and I had an older figure in mind. For tax year 2007, it's $11,390 and it should be $11,650 for adoptions finalized in 2008. This link at NACAC does a good job of summarizing the situation for foster care adoption families.
Basically, you can get the whole credit if you've finalized a special needs adoption. If you're getting any kind of state adoption subsidy, that means it's a special needs adoption. It doesn't matter if the adoption was free. You don't have to claim expenses. If your adoption in 2007 was free, you get $11,390. If your adoption cost $5,000, you get $11,390. This is in the form of a tax credit. So if your tax liability is less than $11,390, the rest of it rolls over to another year. NACAC has some examples and a link to the IRS publication.
I'm going to pay some money for my adoption finalization, which should happen this year very soon, so I'll expect to get this tax credit money next year. My finalization isn't going to cost anything at all, because I get a reimbursement from Sunny's state. My trip expenses for the first trip visiting him are also going to be repaid at that time.
One thing I don't understand very well is the situation for non-special-needs adoptions from foster care. I suppose these would be children who were fostered from birth. In foster care, "special needs" is a very inclusive category and encompasses plenty of kids who are quite healthy. Here's the definition from Georgia:
In the State of Georgia a child who is considered special needs for the purpose of adoption meets the following criteria:
a. Any child eight years of age or older.
b. Any child of African-American heritage who is one year of age or older.
c. Members of a sibling group of three or more who are placed together.
d. Members of a sibling group of two where one is over the age of eight or has another special need.
e. Any child with documented physical, emotional or mental impairments or limitations.
People who do private domestic adoptions and international adoptions get the same tax credit, but they have to file expenses. So if they paid $5000 for an adoption, they would only get $5000 back. So at least in that one way, special needs foster care adoptions are privileged.
Here's my first obnoxious opinion in response to Sang-Shil's comment/question. I don't believe people who are
not independently wealthy should be encouraged to adopt internationally using short-term lures like the tax credit. It's just too dangerous.
This doesn't mean that working class and middle-class people can't be great adoptive parents. It's not a judgment on parenting skills. It's a judgment on the terrible state of children's healthcare in this country. I've just heard too many horror stories.
It's not easy for families who have adopted from foster care to get services, but at least we have Medicaid and subsidies. When things go wrong for international adoptive families, there's no safety net. When they start off, they don't think anything will go wrong. The agencies certainly don't have any vested interest in telling them scary stories about attachment disorder and PTSD and fetal alcohol syndrome. If they're lucky, and they usually are, things will go reasonably well from a health perspective. If they're not lucky, they will end up shattered, bankrupt and their children will be taken away and age out in foster care.
I've heard so many of these stories. Here's a comment that a person just now left at the link I gave for my tax credit policy suggestion:
derinever
1/15/2009 10:44 AM
I adopted a child internationally. There is no social suport for these children He is not able to be educated in America's failing education system. These orphaned children have a risk for learning disabilites and psychological problems from neglect abuse malnutrition and lead posoining. Stop the adoptions until America can commit to helping these kids. My son has NO school. He is eight years old. We have tried to get him help paying more than fifty thousand dollars of failed therapies and tutoring. Tax credits wont change his future of less hope due to poor education help
Just another example. Sunny's foster mom has adopted several children with fetal alcohol spectrum disorder. I want to do a detailed post about some of these children later, so I won't talk about them much more. I was shocked when I found out that one of the girls was 14, because she looked and acted like she was 10 years old. She was also an incredibly sweet, caring and peaceful girl. Sunny's foster mom worries about their future, obviously. But she knows a lot about their disorder. Their medical care doesn't cost her anything... and one of them was hospitalized for months, at death's door, when he was Sunny's age.
His foster mom told me that one of her neighbors had adopted a girl from Russia, and sort of sadly shook her head. She had severe FASD. The family put the girl in an institution when she was 12 years old and she's been there ever since. I wonder what kind of toll that took on their family.
I think that a lot of parents adopt internationally, realize they're in over their heads, then pull it together and scrape up all their resources and work through it. But the ones that don't... I wish there were more statistics about the intersection of international adoption and the foster care system.
There have been about 20,000 international adoptions a year in the past decade. So the tax credit is costing the government $200 million a year. I think this money could be better spent 1) regulating international adoption agencies and preventing corruption 2) ensuring potential parents are educated about the psychological AND cultural needs of international adoptees 3) scaring the hell out of them (the same treatment foster care adoptive parents get in trainings) so that they know for sure what they might be getting into 4) ensuring better healthcare, or at least educating parents about what services are available.
I realize that a lot of what I'm saying could be taken as pathologizing international adoptees, so I feel like I should apologize for that. But I'm coming from a background where you assume an adopted child will have issues due to a traumatic background, so that you're pleasantly surprised when they don't.
Take my dad, the international (non-transnational) adoptee. He's incredibly strong, tough, brilliant, humorous and independent. He's also got some attachment issues. The more I learned about adoption as we were researching, the more I realized how losing his parents in the war affected my father and could have caused him to behave in some really extreme ways that almost permanently alienated me from him when I was a teenager. Ah, the fistfight episode. I'll save that for another post someday.
Anyway, I think that ALL children and families should receive the best care. In a better system (and I hope an Obama administration gets us there as quickly as possible) all families will never have to worry about giving up custody of their children because they couldn't afford residential treatment. Ultimately, this is a problem that affects adoptive AND birth families of all varieties.
Second obnoxious opinion: I am not quite so sure about removing the tax credit from private domestic adoption. Ultimately, I don't think the tax credit there is a good thing. But I've heard one convincing argument that it ultimately relieves strain on the foster care system and helps some children, because otherwise some of these children would end up in the foster care system, with all the huge delays and potential for disrupted attachment that the system entails.
I hesitate to put out that argument. Private domestic adoption is not a subject I blog about, but I do know that there is a lot of stigma on women who voluntarily give children up about adoption... popular ideas that they do it because they're hopelessly dysfunctional and drug addicted and so forth. It's a stigma I don't want to contribute to. I think that today, women decide to relinquish for really diverse reasons that are linked to a lot of factors involving class, race, ethnicity and religion.
However, stating the opposite -- that there's no overlap between mothers who voluntarily relinquish and mothers who get involved with CPS and go through involuntary termination of parental rights -- would be false. There is a small degree of overlap. I've heard many cases of women who "voluntarily" relinquish via a private adoption, because they've had other children who ended up in foster care, and if they didn't do a private adoption, they know they'd have their baby taken away by CPS anyway. At least with private adoption, they have a greater degree of choice.
(This certainly wasn't the case with Sunny's mother. She had a case open with CPS because of Sunny, but everyone, especially her caseworker, was pulling for her to keep BB. If she hadn't died, she certainly would have kept him, and I like to think they would have been very happy together)
So the countering argument is that maybe the tax credit for private domestic adoption does serve a societal purpose. It can also help encourage African-American parents to adopt privately, thereby increasing intraracial adoptions. I've heard a lot of African-American parents are leery of paying any money at all for private adoption because of moral reservations as much as financial ones.
Ultimately, I still don't agree with it. I think it should be replaced by more specifically targeted tax credits and subsidies. And private adoption agencies are so poorly regulated that I wonder how much of the adoption tax credit really goes to the parents. Like I said in the original post, I wouldn't be surprised if an agency would just build the subsidy into their fees and treat it as pure profit on their end.
Also, when it comes to private domestic infant adoption, there's no shortage of parents due to money. There
is a deeply disturbing hierarchy where healthy white babies cost the most, and black and/or disabled babies cost the least. There are only a few infants that are in danger of ending up in foster care because their potential adoptive parents can't afford to adopt... and these babies are the ones that cost the least. I don't blame private adoption. I'm pretty neutral on it, from a perspective of policy. It simply reflects the screwed-up values of our society, no more, no less.
What I hope is that as our country improves its safety nets, there'll be less of a need for things like adoption subsidies. Also, the need for adoption will decrease and there'll be less waiting children. Poverty isn't the single driving force behind adoption, but it's frequently a major contributor. For example, if you're a mother with a combination of mental health and addiction issues, and you come from a family with resources, you'll probably keep your children. If you have the same set of problems and come from a family with no resources, or grew up shuttled between foster homes, you'll probably lose them.
In the short-term, until we get to that better place, special needs adoption subsidies are vital. I don't know what would happen if I had to pay for Sunny's medication on my own. The very thought gives me shivers. Right now, I'm proud that what we give Sunny is not too far away from the very best. Non-generic-available medication, therapy, a tutor that specializes in ADHD, the prospect of experimental neurofeedback treatment, a college savings fund, all the way down to organic fish oil vitamins. I'm lucky because Sunny's needs are really not that severe, but if they were, we would be able to pay for much more treatment without bankrupting ourselves and driving ourselves to the limit emotionally.