Filing Your Return

Federal child fitness tax credit

Income Tax Act s. 118.03, Regulations s. 9400

Starting in 2007, there is a federal non-refundable tax credit available to individuals for registration and membership costs of up to $500 per child, for prescribed programs of physical activity for their children who are, at the beginning of the taxation year

The tax credit will be calculated using the lowest tax rate (15% for 2008), so the maximum tax credit per child for 2008 will be $75.

An additional tax credit will be available to an individual for a child with a disability.  The additional credit will be $500 x the lowest tax rate, if the total of eligible fitness costs for that child in the year is $100 or more.  This brings the maximum tax credit to $150 for 2008, for a child with a disability.

Example of calculation of child fitness tax credit:

The tax credit may be claimed by either spouse, or apportioned between them.

A prescribed program of physical activity includes the following, which are not part of a school's curriculum:

1. a weekly program of 8 or more consecutive weeks in which all or substantially all of the activities include a significant amount of physical activity;

2. a program of 5 or more consecutive days, if more than 50% of the daily activities include a significant amount of physical activity;

3. a program of 8 or more consecutive weeks, offered to children by an organization where participants in the program may select from a variety of activities if

   1. more than 50% of the activities include a significant amount of physical activity, or

   2. more than 50% of the time scheduled in the program is scheduled for activities that include a significant amount of physical activity

4. membership in an organization for 8 or more consecutive weeks if more than 50% of the activities offered to children by the organization include a significant amount of physical activity

5. for a program of 8 or more consecutive weeks, which does not meet the 50% requirement of (c) above, offered to children by an organization where participants in the program may select from a variety of activities, the portion

   1. that is the percentage of those activities that include a significant amount of physical activity, or

   2. that is the percentage of time scheduled in the program that is scheduled for activities that include a significant amount of physical activity

6. for membership in an organization for 8 or more consecutive weeks, where the 50% requirement of (d) above is not met, the portion of membership that is the percentage of all the activities offered to children by the organization that are activities that include a significant amount of physical activity

Physical activity means a supervised activity suitable for children (other than an activity where a child rides on or in a motorized vehicle as an essential component of the activity) that

Horseback riding is deemed to be included in the above definition of physical activity.

For more information, see the Canada Department of Finance press release, as well as the Canada Revenue Agency (CRA) Children's Fitness Tax Credit page.

Provincial fitness tax credit

Manitoba Child Fitness Credit

Manitoba has the same child fitness tax credit as the federal tax credit, with the only difference up to and including 2010 being the tax rate applied.  Manitoba also provides the additional tax credit for a child with a disability.

Starting in 2011, the Manitoba fitness tax credit will be available for fitness activities for young adults aged 16 through 24.  The annual cost of eligible activities up to $500 can be claimed by the young adult, or by a spouse or parent.  The additional tax credit is available for a young adult with a disability.

Yukon Child Fitness Credit

Yukon has the same child fitness tax credit as the federal tax credit, with the only difference being the tax rate applied.  Yukon also provides the additional tax credit for a child with a disability.

Nova Scotia Healthy Living Tax Credit

Nova Scotia has a similar non-refundable tax credit,  the Healthy Living tax credit for eligible children, also called the Sport and Recreational Expenses for Children tax credit, which started in 2005.  The Nova Scotia amount is a maximum of $500 for each child under the age of 18 (federal is 17) at the end of the year.  There is no additional tax credit for a child with a disability.  The Nova Scotia 2008 budget announced that this tax credit would be extended to all Nova Scotians, starting in 2009.

Saskatchewan Active Families Benefit

Saskatchewan has the Active Families Benefit, new for the 2009 tax year, which provides a refundable tax credit of up to $150 per child for cultural, recreational and sport activities.  Children are eligible if they are at least 6 years of age and not older than 15 years of  age on the last day of the year in which the eligible fees were paid.  For more information, see "Completing your Saskatchewan forms" re Form SK479 Line 10 - Active families benefit, which is part of the General tax and benefit guide on the CRA website.

See also - links to all information on Taxtips.ca related to persons with disabilities.

Tax tip:  Keep the receipts for your children's' physical activity programs.

Revised: July 19, 2010