Children’s Fitness Tax Credit Increased

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You may be familiar with the old Children’s Fitness Tax Credit. This was a $500 tax credit per child, that resulted in a $75 tax savings. The idea behind this tax credit was to make putting children into organized sports more affordable for Canadian families. In our experience our clients were very happy to be receiving the $500 tax credit and we hope the recent change announced by the Federal Government will make things more affordable.

The Children’s Fitness Tax Credit has been doubled from $500 per child to $1000 per child. What does this mean? It could mean a $150 savings for you per child. So how do you qualify? Well the Canada Revenue Agency describes an eligible program of physical activity must:

1. Be ongoing (last at least 8 consecutive weeks or, in the case of children’s camps, 5 consecutive days);
2. Be supervised;
3. Be suitable for children; and
4. Require significant physical activity contributing to cardiorespiratory endurance, plus one or more of:
◦muscular strength,
◦muscular endurance,
◦flexibility, and/or
◦balance.

If your child was involved in an organized sport in the past tax year that meets the above criteria bring your receipts with you when you file your income tax return with First Choice Tax Services, your locally owned Nanaimo tax experts!

If you have any questions or concerns regarding the Children’s Fitness Tax Credit please feel free to call us at (250) 753-7888.