Demystifying the Children’s Fitness Tax Credit

By: Toronto4Kids

It’s almost tax season! Parents are encouraged to take advantage of the new Children's Fitness Tax Credit. The tax credit, available on up to $500 per child in registration and membership fees for programs of physical activity, came into effect on January 1, 2007. The measure was designed to help parents offset some of the costs and start children down the road to a lifetime of healthy, active living and to be involved in sports and physical activities. Parents can apply for the credit when filling out their 2007 tax return.

Many supervised children's programs are eligible for the tax credit including hockey, skating, soccer, karate, football, basketball, dancing, gymnastics, swimming, hiking, horseback riding , sailing activities and more.

Amount of tax credit
Parents are able to claim up to $500 per year for eligible fitness expenses paid for each child (under 16 years) at the beginning of the year in which the expenses are paid. Like other non-refundable tax credits, the children’s fitness tax credit is calculated by multiplying the total expense by the lowest marginal tax rate (the rate for 2007 was 15%).

Programs of physical activity
Programs that are eligible must be for the cost of registration or membership of an eligible child in a program of physical activity. Programs must be:
• be ongoing (minimum of 8 consecutive weeks and for camps, 5 consecutive days long);
• be supervised;
• be for children; and
• include a significant amount of physical activity that contributes to cardio-respiratory endurance, as well as muscular strength, muscular endurance, flexibility, or balance.

Disability Tax Credit
Additional support is being provided to children eligible for the disability tax credit to recognize the unique barriers they face in becoming more active. For these children, the fitness tax credit would apply to those under the age of 18, and a separate $500 amount will be available for them where a minimum of $100 is spent on registration fees for an eligible program.

Get a receipt
You must obtain a receipt from organizations that provided the programs for which you registered your child. They will also determine the part of the fee that qualifies for the children’s fitness tax credit. Receipts must be kept for 6 years for your own records and in case of audit. You do not submit receipts with your tax return.

Helpful Links

For complete information and for intructions on how to file the Child Fitness Tax Credit, visit: www.cra-arc.gc.ca/fitness.

For a Children's Fitness Tax Credit Eligibility Checklist, click here.

You can also read up on a Child and Fitness Tax Credit FAQ, from Parks and Recreation Ontario.

Calculating the amount of eligible fitness expenses.