The 2006 federal budget introduced a non-refundable tax credit to let parents claim up to $500 in eligible fees for enroling a child under 16 in an eligible physical activity program.
Eligible Programs of Physical Activity
To qualify for the Children's Fitness Tax Credit, programs of physical activity must
- be ongoing - a minimum of eight weeks duration with at least one session a week or, in the case of camps, five consecutive days
- be supervised
- be suitable for children
- include a significant amount of physical activity that contributes to cardio-respiratory endurance and at least one of: muscular strength, muscular endurance, flexibility, or balance.
Fees Eligible for Children's Fitness Tax Credit
To be eligible for the Children's Fitness Tax Credit fees must
- be paid for a child who is under 16 at any time in the year
- relate to the cost of registration or membership in an eligible program of physical fitness activity. Fees charged to parents for accommodation, travel, food, or beverages do not qualify and must be deducted when calculating fees that qualify for the tax credit.
- be paid in the year the physical activity takes place. For example, amounts paid in 2006 will not qualify for the Children's Fitness Tax Credit even if all or part of the activity takes place in 2007.
Receipts for Children's Fitness Tax Credit
Income tax receipts should include
- Name and address of organization
- Name of the eligible program or activity
- Total amount received, date received, and amount eligible for children's fitness tax credit
- Full name of payer
- Child's name and year of birth
- Authorized signature (not required for electronically generated receipts)
