Part 1: Personal Federal Taxes Changes

2.  Children's Fitness and Arts Tax Credits

The Children's Fitness Tax Credit was introduced by the government in the 2006 federal budget.  It was started as $500 non-refundable tax credit applicable to the costs of eligible children's fitness program.  In 2014, the amount was increased to $1,000 per child.  In 2015, the credit changed to a refundable tax credit.  An additional $500 was available for children eligible for disability tax credit and a minimum of $100 has been paid in eligible fees in the year.  This credit, starting 2016 tax year, has been reduced to $500 per child while the additional $500 for disabled children remains the same.  In 2017 and subsequent taxation years, the fitness credit for both children and disabled children is eliminated.

The Children’s Arts Tax Credit was introduced by the government in the 2011 federal budget.  It was started as $500 non-refundable tax credit applicable to the costs of eligible children’s arts program.  An additional $500 was available for children eligible for disability tax credit and a minimum of $100 has been paid in eligible fees in the year.  This credit, starting 2016 tax year, has been reduced to $250 per child while the additional $500 for disabled children remains the same.  In 2017 and subsequent taxation years, the arts credit for both children and disabled children is eliminated.

In Summary:

Children’s Fitness and Arts Tax Credits

For more information, please contact us @ 778-374-1865 or info@theresalocpa.ca

Note:  All information relating to the tax credits above is available from CRA website.

By Theresa Lo, CPA, CGA

January 1, 2017