As a parent, you can claim an amount for eligible adoption expenses related to the adoption of a child who is under 18 years of age. The maximum claim for each child is $10,909. You can claim these incurred expenses in the tax year that includes the end of the adoption period in respect of the child.
Are your expenses eligible?
Eligible adoption expenses that you can claim are:
- fees paid to an adoption agency licensed by a provincial or territorial government (an “adoption agency”);
- 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 that child; and
- any other reasonable expenses related to the adoption that are required by a provincial or territorial government or an adoption agency.
Did your expenses happen during the adoption period?
The adoption period:
- begins at the earlier of:
- the time that 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 of that child; and
- the time that the child first begins to reside permanently with you.
Completing your tax return
On line 313 of your Schedule 1, Federal Tax, enter the amount of eligible adoption expenses (maximum $10,909) that you paid as an adoptive parent.
The claim for eligible expenses can be split between two adoptive parents as long as the combined total claim is not more than the amount before the split. Parents can claim these incurred expenses in the tax year that includes the end of the adoption period in respect of the child.
Reimbursement of an eligible expense
- You must reduce your eligible expenses by any reimbursements or other forms of assistance that you received.
- If you are filing a paper return, do not include your receipts, but keep them in case CRA ask to see them. If you are filing electronically, keep all of your documents.
If, at the end of the year, you reside in Newfoundland and Labrador, Ontario, Manitoba, Alberta, British Columbia, or Yukon, be sure also to claim your eligible adoption expenses on line 5833 of your Form 428.
For more info click on the link below
The Income Tax Act treats spouses and common-law partners the same way. However, it is important to understand what the terms mean. A “spouse” is someone to whom you are legally married. The definition of a “common-law partner”, on the other hand, depends on whether or not you have children.
If you start cohabitating with someone who is the parent of your child, you are considered to be common-law partners from the time you move in together. A “parent”, for this purpose, includes an adoptive parent (whether in law or in fact) as well as a natural parent.
If there are no children involved, you only become common-law partners after you have lived together in a conjugal relationship for 12 continuous months. The 12-month period includes any period during which you were separated
A Registered Education Savings Plan (RESP) is a special savings account that can help you, your family or friends start saving now for your child’s education after high school.
RESPs are registered by the Government of Canada so savings for education can grow tax-free until the person named in the RESP enrolls in studies after high school.
For each child named, you can put up to $50,000 into an RESP. There is no annual contribution limit. Note that the Government will only add a grant on the first $2,500 saved annually.
Canada Education Savings Grant
When you open an RESP for your child, the Government of Canada will add the Canada Education Savings Grant to your savings. Since 1998, over three million children have benefited from it.
On the first $500 you save in your child’s RESP account, the Canada Education Savings Grant will give you:
- up to $200, if your net family income is $38,832 or less
- up to $150, if your net family income is between $38,832 and $77,664
- up to $100, if your net family income is more than $77,664
Canada Learning Bond
The Canada Learning Bond is money from the Government of Canada to help modest-income families start saving early for their child’s education after high school.
You can get the Canada Learning Bond for your child if:
- your child was born after December 31, 2003; and
- your monthly Canada Child Tax Benefit payment (commonly called “baby bonus” or “family allowance”) includes the National Child Benefit Supplement.
If your family qualifies, the Government of Canada will make a payment of $500 into your child’s RESP. Extra payments of $100 a year will be made automatically for children up to age 15, as long as you continue to receive the National Child Benefit Supplement annually. The total Canada Learning Bond available for your child could amount to $2,000. You do not have to contribute any of your own money to get this bond.An additional $25 will be paid into the RESP with the first $500 bond to help cover the cost of opening an RESP.
For more information, go to: http://www.canlearn.ca/eng/index.shtml
You can deduct your motor vehicle expenses if you meet all of the following conditions:
- You were normally required to work away from your employer’s place or business or in different places.
- Under your contract of employment, you had to pay your own motor vehicle expenses.
- You did not receive a non-taxable allowance for motor vehicle expenses. Generally, an allowance is non-taxable when it is based solely on a reasonable per-kilometer rate.
- You keep with your records a copy of Form T2200, Declaration of Conditions of Employment that has been completed and signed by your employer.
The types of expenses you can deduct include:
- Fuel (gasoline, propane, oil);
- Maintenance and repairs;
- License and registration fees;
- Capital cost allowance;
- Eligible interest you paid on a loan used to buy the motor vehicle; and
- Eligible leasing costs.
Sometimes, your employer will include an unreasonably low allowance as income on your T4 slip even though you do not want to claim any expenses. When this happens, have your employer complete and sign Form T2200, or get a letter from your employer stating that the allowance was unreasonably low. Enter this amount on line 229 of your return.
If you use a motor vehicle for both employment and personal use, you can deduct only the percentage of expenses related to earning income. To support the amount you can deduct, keep a record of both the total kilometers you drove and the kilometers you drove to earn employment income. We consider driving back and forth between home and work as personal use.
If you use more than one motor vehicle to earn employment income, calculate each vehicle’s expenses separately.