2007 Tax Return – Don’t Forget to Claim Children’s Fitness Tax Credit

Children’s Fitness Tax Credit

This will be the first time you can claim a non-refundable children’s fitness tax credit on your tax return. Starting January 1, 2007, the Government of Canada is allowing above tax credit on eligible amounts of up to $500. A lot of Canadians are still not aware of this tax-saving opportunity. I am writing this post today to give you some basic information. Here are answers to some common questions about this tax credit

What are the age limits?
Children who are under 16 years of age or under 18 years of age with a disability are eligible to participate.

What are the amounts of the tax credit?
Up to $500 eligible amount can be claimed. An additional $500 can be claimed for children with disabilities.

What is the credit worth in terms of real dollar value?
The credit is calculated using the lowest tax rate (15% for 2007) on a maximum of $500. It translates into $75 per child and an additional $75 for a child with a disability (total $150 for a child with disability)

What types of programs are eligible?
Eligible programs must meet the following:
Program has to be supervised
Program must include a significant amount of physical activity
Program must be ongoing (at least eight consecutive weeks, or, in the case of children’s camps, five consecutive
days  long)

What types of programs are not eligible?
Programs such as motorized sports, school physical activity that are part of the core curriculum or an activity for which a child rides on are not eligible.

Where can I get more information?
Canada Revenue Agency’s children’s fitness tax credit eligibility checklist page. Also, more information can be obtained by visiting Canada Revenue Agency’s main site.

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