Adoption expenses incurred to adopt a stepchild are potentially eligible for the tax credit.

In a June 20, 2019 Technical Interpretation (2019-0797671E5, El-Kadi, Randa), 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 (Subsection 118.01(2)). 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 (Subsection 118.01(3)). 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.

For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 459.