Part of the 2013 budget is the proposal to extend the adoption period for the credit by modifying the time at which this period begins.  This would be applied to adoptions finalized in 2013 and subsequent years.  

So what is the Adoption Tax Expense 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).

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.

                        
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.

Source: CRA website-  www.cra.gc.ca

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