As we mentioned in last week's Breaking Tax and Investment News, it's that time of year again, back to school and back to enrolling our children in their various activities. Most of us are aware of the Federal government's Canada Fitness Credit, which is a tax credit of up to $500 ($1,000 for disabled children) provided for enrolling children in an eligible program of physical activity, so let's do a quick review of the eligibility guidelines:
Eligibility for the Credit:
A program must be:
Organizations providing eligible programs of physical activity will determine the part of the fee that qualifies for the tax credit.
Tax Receipting. Claims for the children's fitness tax credit will need to be supported by a tax receipt that contains information sufficient for the CRA to monitor compliance. Similarly, organizations will be required to keep relevant books and records.
Child Care Expenses. To ensure that the same expenses are not claimed under both the children's fitness tax credit and the child care expense deduction, an individual will not be allowed to make a claim for a children's fitness tax credit in respect of amounts for which any person has made a claim under the child care expense deduction.
Public Transit Credit: This credit was introduced in 2006 and is claimable for every family member by either spouse or the family member depending on best benefit.