This article is applicable for year 2013 and earlier years. See Children’s Fitness Tax Credit (CFTC) new changes announced by the government in October, 2014.
Children’s fitness tax credit is a non-refundable tax credit to encourage parents to register a child in certain physical-fitness activity programs.
Eligibility
To be eligible for children’s fitness amount, the children’s age, the activities and programs have to meet certain conditions.
How much is the credit
You can claim the actual fees you paid up to a maximum of $500 per child. For example, if you paid $200 to send your child to a swimming class and $250 to soccer program. The amount you can claim is $450. The tax credit, at the rate of 15%, is $67.50. On the other hand, let’s say you spent $2,000 on hockey program, the amount you can claim is $500, a tax saving of $75 at the tax rate of 15%.
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The amount can be shared
You can share the amount with another person, for example, your spouse or common-law partner, as long as the total claimed is not more that the maximum amount that would be allowed if only one of you were claiming it.
How to claim children’s fitness credit
The amount is claimed on line 365 on schedule 1. And keep the receipts in case the Canada Revenue Agency (CRA) asks to see them later.
Children with disabilities
If the child qualifies for disability amount, the age limit is under 18 years old instead of under 16 years old. Moreover, an additional amount of $500 ($1,000 totally) can be claimed as long as a minimum of $100 is paid for registration or membership fees for a prescribed program of physical activity.
Related tax credits and tax deductions
If the expenses qualify to be claimed as child care expenses and the children’s fitness amount, you must first claim this amount as child care expenses. Any unused part can be claimed for children’s fitness amount.
If an expense is eligible for the children’s fitness amount, is not eligible for the children’s arts amount.
History
The credit started from 2007.