$500 Child Tax Credit
Starting with the 2007 tax year, the Government of Canada allows a non-refundable tax credit based on eligible fitness expenses paid by parents to register a child in a prescribed program of physical activity.
As with most 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 is 15%).
You can claim the children’s fitness tax credit for each child who was, at the beginning of the year in which the registration or membership fee was paid, under 16 years of age or under 18 years of age and eligible for the disability tax credit (as long as another person has not already claimed the same eligible fitness expenses and that the total amount claimed is not more than the maximum that would be allowed if only one of you were claiming the credit).
Eligible fitness expenses include amounts paid by you or your spouse or common-law partner in the year, regardless of when the activity takes place. Amounts paid before 2007 do not qualify for the credit.
Example
Mary registered:
her daughter Julie in a prescribed program of physical activity and paid fees of $750 on August 30, 2006. The program started on September 15, 2006, and ended on April 21, 2007.
Mary’s husband registered:
their son Eric in a prescribed program of physical activity and paid fees of $750 on December 20, 2006. The program started on January 6, 2007, and ended on April 28, 2007; and
their daughter Samantha in a prescribed program of physical activity and paid fees of $750 on January 2, 2007. The program started on January 6 and ended on April 28, 2007.
On her 2007 income tax return, Mary can only claim the maximum amount of $500 for Samantha's program (if her husband is not claiming this amount) because the fees for the other two children were paid in 2006.
Please contact SKF for more details. |
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