Posted on March 10th, 2020 in Domestic Tax


child hand with crayons colouring

In a June 20, 2019 Technical Interpretation, CRA was asked whether a taxpayer legally adopting the child of his or her common-law partner would be eligible to claim the costs under the adoption expense tax credit ($16,255 @ 15% for 2019). CRA opined that the credit could be claimed by the adoptive parent, but not by the biological parent, despite the usual ability for spouses to split this credit. CRA also noted that the provincial adoption law would have to be reviewed to determine whether a step-parent could legally adopt the child. In this case, noted as being in Alberta, provincial law allows the claim.

ACTION ITEM: Ensure to provide receipts associated with the adoption of a step-child when delivering your personal tax information.

Article originally published in: Tax Tips & Traps 2020 First Quarter – Issue 129.