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Adoption Tax Credit

For individuals considering adoption or currently involved in the adoption process CRA offers an Adoption Tax Credit.

Adoption period:

  • begins at the earlier of :
    • the time the eligible child’s adoption file is opened with a provincial or territorial ministry responsible for adoption (or an adoption agency licensed by  a provincial or territorial government); and
    • the time, if any, that an application related to the adoption is made to a Canadian court; and
  • ends at the later of :
    • the time an adoption order is issued by, or recognized by, a government in Canada in respect to the child; and
    • the time that the child first begins to reside permanently with you

Eligible adoption expenses are:

  • fees paid to an adoption agency licensed by a provincial or territorial government
  • court costs and legal and administrative expenses related to an adoption order in respect of the child
  • reasonable and necessary travel and living expenses of the child and the adoptive parents
  • document translation fees
  • mandatory fees paid to a foreign institution
  • mandatory expenses paid in respect of the immigration of the child
  • any other reasonable expenses related to the adoption that are required by a provincial or territorial government or adoption agency

Completing your tax return:

  • the maximum claim per child is $11,128 – the two adoptive parents can split eligible expenses as long as the total combinedclaim is not more than the amount before the split
  • parents can claim these incurred expenses in the tax year including the end of the adoption period in respect of the child
  • you must reduce your eligible expenses for any reimbursements or other forms of assistance you received.
  • keep all your documents in case CRA asks to see them
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