Adoption Expense Tax Credit — Claim Up to the Annual Maximum for Adoption Costs
What Is It?
Canada allows a federal tax credit for eligible adoption expenses related to adopting an eligible child. The total claim is capped per child, but the list of eligible costs is broader than many families expect.
What Most People Don’t Know
- The claim goes in the year the adoption period ends, not necessarily the year you spent the money.
- Travel, legal, agency, translation, and immigration costs can count.
- If multiple people can claim, the combined claim cannot exceed the annual maximum for that child.
Frequently Asked Questions
Can I claim expenses from prior years once the adoption is finalized?
A: Yes, if they are eligible adoption expenses from the adoption period. CRA says the claim is made in the tax year that includes the end of the adoption period.
What is the federal maximum?
A: CRA publishes the maximum claim amount for each tax year and eligible child.