Are adoption costs tax-deductible?

No. Adoption costs are not considered extraordinary expenses under section 33 of the Income Tax Act and are therefore not tax-deductible. This is confirmed by the consistent case law of the Federal Fiscal Court (BFH).

Overview of Case Law

• Landmark Ruling (1987): The BFH ruled that adoption costs are based on a voluntary decision and therefore do not arise out of necessity (BFH, judgement of 13.03.1987, III R 301/84).
• Renewed Attempt (2012–2013): An attempt to change this view failed due to resistance within the BFH. A decision by the Grand Senate did not occur.
• Confirmation by the BFH (2015): Even in cases of organic sterility, adoption costs remain non-deductible (BFH, judgement of 10.03.2015, VI R 60/11).
• Constitutional Complaint (2016): A complaint to the Federal Constitutional Court was not accepted for a decision (BVerfG, decision of 13.06.2016, 2 BvR 1208/15).

Current Ruling

The Münster Finance Court dismissed a lawsuit in which adoptive parents wanted to claim adoption costs as extraordinary expenses after unsuccessful fertility treatment (FG Münster, judgement of 25.06.2024, 14 K 1085/23 E).
Reason: The decision to adopt was also voluntary in this case and not medically necessary.

Reason for Rejection

• Not a Medical Measure: Adoption does not replace medical treatment and is not part of a medical therapy.
• Voluntariness: Even after involuntary childlessness, the decision to adopt remains a voluntary action and is therefore not tax-deductible.

Conclusion: Adoption costs are not tax-deductible under current law and established case law – not even in cases of medically induced infertility.