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