Tax Credits that work for YOU!
There are many tax credits that the average person is unaware of. Matters of fact families are losing out on a lot of money come tax time.
So I will be doing a series of articles about tax credits; “Tax Credits that work for YOU!” First I will discuss the Children’s Fitness credit and Children’s Arts Credit.
Being a parent is a tough task. Each child is unique in their tastes and wants. Some kids love hockey, some love soccer, and well, some don’t even like sports.
The government has given parents with active children a tax credit to ensure that our next generation is getting the amount of physical activity required for a growing child. Canada Revenue Agency (CRA) has guidelines on what can classify as physical activity. The highlights of the guidelines are that the programs must have a significant physical activity component, which over time can improve fitness and must run for at least eight weeks with a minimum session of once per week. In the case of children’s camps, this must be five consecutive days per week.
Now for the essentials; the tax credit maximum is $500 that a parent can claim for children (pre child) up to 16 years of age in the year the amount is paid. The credit can be stretched for 18 year olds only if they are eligible for the disability tax credit. A parent of a disabled child is also able to claim an additional $500 amount, as long as a minimum of $100 is spent on registration or membership fees (for a total credit of $1000). This briefly explains the aspects of the fitness tax credit (don’t forget to get a registration receipt!)
Now, you may ask, “Well, what about my son/daughter who doesn’t like sports, but likes acting, painting, music, etc?”No need to fear, CRA has recently introduced the Children’s Arts tax credit for those activities that may not be classified as sports. The same age and amount ($500) rules apply, in addition to the $1000 maximum for parents of a disabled child. Keep in mind that any programs that are part of a school curriculum are not eligible.
So there you have it parents, these two tax credits not only keep your children healthy physically and mentally, but also lighten the tax load on your wallet. I’ve hope you enjoyed this edition of “Tax Credits that work for YOU!”
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