The Canadian and Provincial Government have created a tax credit to help encourage physical activity in children. This credit came into effect federally 2008 tax year, and more recently provincially as well.
Ball Hockey Ontario systems generated receipts, both on-line, and in the club meet the criteria of what must appear on an official receipt in order for parents to be able to claim the credit.
How the Credit Works
The children’s fitness tax credit will allow parents to claim a maximum of $500 per year for eligible fees paid for each child under 16. In recognizing the particular challenges that children with disabilities face, the Income Tax Act will be amended to raise the age limit for disability tax credit (DTC)-eligible children from under 16 to under 18 years of age for the purposes of the Children’s Fitness Tax Credit.
The government has defined an eligible fee as only the registration and/or membership portion of a fee. Registration and membership costs can include the costs of administration, instruction, and the rental of facilities. They cannot include late fees, accommodation, travel, food, or beverages.
What Parents Need to Know
Only children under the age of 16 are eligible for the tax credit. So long as your child is 15 years old on January 1st of the tax year, they are eligible. Essentially, if your child is under 16 at any point during that year, they qualify.
Only programs that have been paid for in the current tax year will be eligible. If you paid for a sports program in a previous tax year, it is not eligible, even if the program runs in the current tax year. The government has based program eligibility on the date it was paid for rather than the date(s) the program takes place.
Links
More information on the Children’s Fitness Tax Credit can be found at:
http://www.cra-arc.gc.ca/fitness/
More information on which sports/activity programs are eligible for the credit can be found at: http://www.fin.gc.ca/news06/06-084e.html
The Ontario Children’s Activity Tax Credit lets you claim up to $500 in eligible expenses and get up to $50 back for each child, or up to $100 for a child with a disability. Keep your receipts. You’ll need them to claim this credit when you fill out your income tax return. http://www.fin.gov.on.ca/en/catc/
