Understanding Children’s Arts and Fitness Tax Credits in Canada
specifically focused on providing relief for families with children in various activities.
And, with these credits in place the tax relief provided to parents is now better than ever.
In 2007, the Children’s Fitness Tax Credit was introduced to promote physical fitness among children. This credit applies to children sixteen and under, who participate in sports or fitness activities during the year. Parents can claim up to $500 annually, resulting in a maximum savings of $75 per child.
Now, starting in 2011, the Children’s Fitness Tax Credit has been joined by the Children’s Arts Tax Credit – this time to promote participation in artistic, cultural, recreational and developmental activities. These activities include drama, painting, and music classes as well as academic tutoring and community programs like Scouts or Girl Guides. These arts activities, like fitness activities, positively contribute to a child’s development.
Like the Children’s Fitness Tax Credit, the Children’s Arts Tax Credit applies to children sixteen and under, who participate in arts activities during the year. The only restrictions are that the program must be at least eight weeks long and must occur on a weekly basis or, if it is an arts-related day camp, it must run for five consecutive days. These are the same rules that apply to the Children’s Fitness Tax Credit.
Under the Children’s Arts Tax Credit, parents can claim up to $500 annually, resulting in a maximum savings of $75 per child. For children with disabilities, the credit applies to children eighteen and under, and parents can claim up to $1,000 annually. Again, these are the same rules that apply to the Children’s Fitness Tax Credit.
Combined, these two tax credits recognize the importance of extracurricular activities in the lives of children – whether those extracurricular activities are fitness or arts related. And they help to reduce the overall cost of these extracurricular activities for parents. So the time has never been better to enroll your child in hockey or piano or both. Please call us at 780-466-6204 or emailinfo@kwbllp.com if you have any questions about these or any of the other tax credits that are available to you.