Adoption and fostering - financial incentives?

Posted in the Utica Forum

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SparkleMom

Fort Wayne, IN

#1 Apr 4, 2011
What can people here tell me about the compensation and tax advantages and incentives for bringing in foster children? I've been hearing some amazing stories lately about how much money can be made per month. And what about the adoption route? I've heard of some fams that get more back in taxes refunds and kickback programs than they make from their "real" jobs, especially if it is a non-infant kid.
really

Utica, NY

#2 Apr 4, 2011
People like you, obviously only concerned about how adopting a child will line your pockets, should not be allowed to adopt.
SparkleMom

Fort Wayne, IN

#3 Apr 4, 2011
Sorry to disappoint, but I'm not asking about myself; I'm in complete agreement with you. I'm just hoping to get facts about what the level of compensation really is. Some amount makes sense, but the numbers I've been hearing are unbelievable.
EffenNuts

Utica, NY

#4 Apr 4, 2011
I don't know anything about the fostering program, but can tell you that special needs adoptions are granted $13,710 per child. This link can give you detials... http://taxes.about.com/b/2010/10/04/enhanced-... . Parents get this money even if they have not paid anything for the adoption itself, and even if they paid less than this in taxes. It's a free gift from the tax payers.
POV

Utica, NY

#5 Apr 5, 2011
There are "families" that use as a way of earning money instead of holding down actual jobs. it's disturbing. I feel bad for the rotton situation some of these kids are in, but the puppy mill approach to fostering is no better than what they were in before. It shoudl be about giving the kids a safe home, and not about becoming a source of cash for people that want to scam the system.
me too

Orlando, FL

#7 Apr 5, 2011
Believe it or not there are people out there that are involved in foster care & adoption for all the right reasons....
POV

Utica, NY

#8 Apr 6, 2011
Cecilia wrote:
<quoted text>
Also, Foster Moms supposedly have stright restrictions on how they can discipline a Foster Child.
Easy. Drug them. It's so much simpler than actual parenting. Get them into a chemical induced haze with a doctors permission. There's not a behavioral problem that doesn't come with a label and a matching prescription.
DAD

Watertown, NY

#9 Apr 6, 2011
I know someone who fosters and it's dollars a day, hardly enough to feed and cloth the children you take in. As it should be, there are people who just take in kids for the money...sad.
POV

Utica, NY

#10 Apr 6, 2011
DAD wrote:
I know someone who fosters and it's dollars a day, hardly enough to feed and cloth the children you take in....
Interesting. That's in direct contrast with numbers I've heard, which are on the order of $500-$600/month per kid (which I guess IS dollars a day).

So does anybody know actual amounts? Does it vary according to the nature of the kids or the area?
Fostering for years

Utica, NY

#11 Apr 8, 2011
Foster parents receive a daily rate for foster children. There are three levels depending on the level of care needed for the child. For the lowest rate, it is about $600 - 700 per month. The only way people could make money being foster parents is if you don't properly cloth, feed or put the kids in activities. Also, it is almost impossible for both foster parents to work due to the fact you have to constantly take them to counseling, doctor appointments, visits, attend school reviews, attend family court and go for training.

The tax credit for adopting foster children is a one time tax credit and does not apply to all foster children. It basically applies to kids that have such high needs that it would be a tremendous financial burden to adopt them, therefore they would stay in foster care for over a decade (which would cost hundreds of thousands dollars to tax payers).

You can also discipline your foster children. You must have a discipline plan you can explain. Obviously, no corporal punishment is allowed.

What I have seen is that foster parents come in all forms. Some are in it for all the right reasons and some are in it for all the wrong reasons. The problem with the system is that most decent people are not willing to do it because of usually false stories they hear. The county workers realize who the bad foster parents are, but the reality is if they have the only open bed available they get children. If there was a strong pool of quality foster parents, the poor ones would never be utilized.
DAD-2

Fort Wayne, IN

#12 Apr 11, 2011
Fostering for years wrote:
For the lowest rate, it is about $600 - 700 per month.... The tax credit for adopting foster children is a one time tax credit and does not apply to all foster children. It basically applies to kids that have such high needs that it would be a tremendous financial burden to adopt them
Thanks for the detailed note.

So two of the "lowest rate" foster kids for 1 year nets $33,600 tax free, right? I think that's PLENTY of room for profit. This is comparable to about $55k/year in an annual salary, or what somebody would make at a $25/hour job in an entire year. Then figure in that the kids are fully covered by the state for all medical expenses and usually get the school lunch program... for most people in upstate NY, this is considered lucrative.

I'll let you do the math for the foster homes that run like puppy mills, that have 5-6 kids at any one time.

As for the tax credit, it is my understanding that "special needs" is actually a VERY broadly based term. In NY, any kid beyond toddler age is "special needs". Ditto any minority kid, or sibling groups. With that definition, adopting a brother/sister pair nets somebody not only the one-time bonus check of over $27,000, but also grants them monthly social security benefits until they turn 18.

I'm not saying that everyone doing this is motivated only by the money, but it also certainly is part of the equation.
robert h

Utica, NY

#14 Apr 20, 2011
what a wonderful way to give back
Mary

Springville, NY

#15 Nov 4, 2011
I am a foster parent that can tell you your numbers are incorrect. I have two infants and the amount is less than 500 a month per child. This incluses diapers, food, clothing, medicine, and in some case, yes people could make money. But, there are people in everything for the wrong reason. I can tell you many of us do not make ends meet with just that money. My kids get lots of my regular salary. My lawyer fees on many occassions have been greater than the money I got for them that last month.
Ratios

Utica, NY

#16 Nov 4, 2011
The question might become, what percentage of people are fostering because of the right reasons, and what percentage are doing it for "easy" money? Let's call it 50/50. I will believe that most get into this for good reasons, but that many then make some discoveries.
-- There are certain age ranges that are easier than others.
-- There's not that much extra work or expense to having 4 kids vs 3 kids.(or 6 vs 5, etc)
-- People become reliant on the extra money, and for minimal extra effort they can boost their income and profit for the month.
welfare princess

Massena, NY

#17 Nov 4, 2011
I saw on judge judy some one disclosed that they recieve an adoption allowance of 1500$ a month.If you have a couple adopted kids plus some ssi money and add in food stamps,damn sounds pretty good.That would buy a lot chianese food and pizza and wings.Also keystone light,time buyer and what ever else we wanted.where do i sign up?
adoptive parent

Hollywood, FL

#18 Sep 4, 2012
I am a newly adoptive parent and I will say that I recieve 200 a month and that covers nothing these days ! I never even thought about the money I didnt even start receiving assistants for until after the first yr and a half. I continued to work put her on my insurance and handled her health issues myself. Her money a month pays for after care thats about it.. I hope if anyone is thinking about adopting your thinking about the Childs best interest not you own!
Honey

United States

#19 Sep 5, 2012
You can also look forward to a completely free gift of $13,000+ from the IRS on next year's taxes. I'm not talking about a $13k deduction... this is an outright check for that amount.

But you're right...$200/month is trivial, and not a proper incentive. I think the bigger concern is people who ARE doing the fostering game largely for the money. They certainly are out there.

Level 7

Since: Jan 08

Rome

#20 Sep 5, 2012
adoptive parent wrote:
I am a newly adoptive parent and I will say that I recieve 200 a month and that covers nothing these days ! I never even thought about the money I didnt even start receiving assistants for until after the first yr and a half. I continued to work put her on my insurance and handled her health issues myself. Her money a month pays for after care thats about it.. I hope if anyone is thinking about adopting your thinking about the Childs best interest not you own!
Bless you!
jaydog

Bellevue, WA

#21 Sep 5, 2012
As a child who has been adopted and lives in a home with numerous foster children. This news is disgusting and shocking. I feel like a job to be compenstated for and not like a daughter at all.

Level 7

Since: Jan 08

Rome

#22 Sep 5, 2012
Did you feel like a job to be compensated for before learning this news?

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