Tax Time: The Children’s Fitness Tax Credit

in CRA, Income Tax

For those of us who have kids who are active (and that activity costs us money, that is an important thing to remember) the government created the Children’s Fitness Tax Credit.

So is this only for children who are playing sports and such? Pretty much, it is a Physical Activity that is being credited, and the rules of what is covered are closely watched, so don’t think that since your child does Tuba Lessons this is covered by this credit (it might be covered elsewhere, I am not sure).

The other thing to watch is this is for kids under 16 years of age, or under 18 years old (if the child is disabled). Now the thing to watch with this definition is they are talking about the Child’s age on January 1st of the tax year, so if your child turns 16 on January 2nd that year, you can still use this tax credit (or in the case of the disabled child, 18 on January 2nd).

If you use TurboTax or some other tax preparation software make sure that the software gives you this credit if you are supposed to receive it (I am pretty sure it would, but it is something to do a double check on as well).

For Parents of Disabled Children

The other thing to watch for is the following from the CRA web site:

If a child qualifies for the disability tax credit, parents can claim up to $500 per year in eligible fitness expenses paid for the child who is under 18 years of age at the beginning of the year. Also, if at least $100 in eligible fitness expenses has been paid for the child, an additional amount of $500 can be added to the eligible fitness expenses actually incurred.

That is important if you have a disabled child, it seems to read that you can claim up to $1000 on this credit, if you have spent more than $100 on a fitness expense as well (if anyone wishes to comment about whether this is correct or not, please do, this is only my interpretation of what I am reading).

Get Your Receipt!

The other thing to do, is to remember to get a receipt from your Hockey Team, Football Team, Riding School or whatever, so you can make this claim. If you have not received a receipt, contact them and ask when you will receive your receipt so you can safely make this claim.

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{ 3 comments }

{ 3 comments… add one }
  • ekarzaen February 15, 2011, 7:06 AM

    The survey found that parents in the low income category were significantly less aware of the tax credit program, and less likely to claim the Children’s Fitness Tax Credit when compared to other income groups.

    Reply
  • Kim January 27, 2011, 5:06 PM

    Just wanted to point out that the Ontario government introduced a similar credit, but it covers a variety of children’s activities, not just sports. So keep those receipts for tuba lessons! http://news.ontario.ca/mof/en/2010/09/ontario-childrens-activity-tax-credit.html

    Reply
    • bigcajunman January 27, 2011, 5:10 PM

      Good to know too, for we lovers of Tubas and Violas

      Reply

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