Does your child qualify for the Children’s Fitness and Arts Tax Credit?

The following rules apply to be eligible up to $500 non-refundable tax credit for both the Fitness and Arts Tax Credit –

• Child must be under 16 at the beginning of the year to be eligible
• Programs must be ongoing –

o   Weekly program involving a minimum of 8 consecutive weeks’ duration

o   Programs of 5 consecutive days (summer/day camps)

• Children eligible for a disability tax credit are eligible for the fitness and arts tax credit up to the age of 18 and qualify for an addition $500, for a total fitness / arts credit of $1000

In 2012, the taxable benefit for a $500 credit at 15% is $75

Fitness Tax Credit –

This credit requires that the program must include “significant physical activity that contributes to cardio-respiratory enducare plus one or more of: muscular strength, muscular endurance, flexibility, or balance.” (CRA)

Some activities eligible for the fitness tax credit are: basketball, football, hockey, swimming, hiking, horseback riding, karate and sailing

Arts Tax Credit –

This credit requires that the program must meet one of the following criteria, as per the CRA website:

• it contributes to the development of creative skills or expertise in an artistic or cultural activity;
• it provides a substantial focus on wilderness and the natural environment;
• it helps children develop and use particular intellectual skills;
• it includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or
• it provides enrichment or tutoring in academic subjects.

Note: Activities that are part of a regular school program or sports-academics programs do not qualify for either the Fitness or the Arts tax credit.