Budget 2013 - Adoption Expense Tax Credit

Notice to the reader

This measure has received Royal Assent.

For adoptions that are finalized in 2013 and subsequent years, the budget proposes to extend the adoption period for the credit by modifying the time at which this period begins.

What is the Adoption Expense Tax Credit?

You can claim an amount for eligible adoption expenses related to the completed adoption of a child who is under 18 years of age that were incurred during the adoption period. The maximum claim for each child is $11,669 for the 2013 taxation year. The credit is determined by multiplying the amount claimed by the lowest income tax rate (15% for 2013).

What is the adoption period for a child during which the expenses must be incurred?

The adoption period begins at the earlier of

  • the time that the child's adoption file is opened with a provincial or territorial ministry responsible for adoption or with 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.

The adoption period ends at the later of the time an adoption order is issued by, or recognized by, a government in Canada in respect of that child and the time the child first begins to reside permanently with you.

What is the proposed change to the adoption period?

For adoptions that are finalized in 2013 and subsequent years, the budget proposes to extend the adoption period by modifying the time at which this period begins. Reference will be made to the time that an initial application is made for registration instead of the time that a particular child's adoption file is opened. The revised adoption period will begin at the earlier of

  • the time that 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; and
  • the time, if any, that an application related to the adoption is made to a Canadian court.
Where can I get more information about the change to the adoption period?

The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its Web pages often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please consult the Department of Finance Canada's Budget 2013 documents for details.

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