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
under 16 years of age, or
under 18 for a child with a disability (i.e., when any
person is able to claim a disability amount tax credit for the child on
line 318 of the federal tax return)
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:
Total cost for prescribed programs for the child
$80
$100
$200
$300
$400
$500
$600
Child fitness tax credit @15% to maximum $75
$12
$15
$30
$45
$60
$75
$75
Additional tax credit for child with disability $500 x 15%
0
75
75
75
75
75
75
Total tax credit for child with disability
$12
$90
$105
$120
$135
$150
$150
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:
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;
a program of 5 or more consecutive days, if more than
50% of the daily activities include a significant amount of physical activity;
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
more than 50% of the activities include a
significant amount of physical activity, or
more than 50% of the time scheduled in the program
is scheduled for activities that include a significant amount of
physical activity
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
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
that is the percentage of those activities that include a
significant amount of physical activity, or
that is the percentage of time scheduled in the program
that is scheduled for activities that include a significant amount of
physical activity
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
in the case of a child with a disability, results in
movement and in an observable expenditure of energy in a recreational
context; and
in the case of any other child, contributes to
cardio-respiratory endurance and to one or more of the following:
muscular strength,
muscular endurance,
flexibility, and
balance
Horseback riding is deemed to be included in the above
definition of physical activity.
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.
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substitute for professional advice. Each person's situation differs, and
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site to your best advantage.
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