skip to Main Content
Adoption Tax Credit

Adoption Tax Credit

Claiming Adoption Expenses

By Nizam Shajani, CPA, CA, MBA

The adoption process is at times lengthy and costly.  You can claim adoption expenses on your personal tax return.  You need to be aware of the expenses that are eligible along with the adoption period.

How Much Can You Claim?

The maximum claim for each child is $15,905.  Two adoptive parents can split the amount.

What Expenses Can Be Claimed?

Eligible adoption expenses include the following:

  • 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 for 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 for the child’s immigration
  • any other reasonable expenses related to the adoption required by a provincial or territorial government or an adoption agency licensed by a provincial or territorial government

When to the Expenses Need to have Happened?

The expenses need to have occurred during the adoption period.  This is specifically noted as the period of time between:

  • begins at the earliest of the following dates:
    • when an application is made for registration with a provincial or territorial ministry responsible for adoption (or with an adoption agency licensed by a provincial or territorial government)
    • when an application related to the adoption is made to a Canadian court
  • ends at the latest of the following dates:
    • when an adoption order is issued by, or recognized by, a government in Canada for that child
    • when the child first begins to live permanently with you

 

This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2020 Shajani LLP