Benefit From The Children's Fitness Tax Credit

As of January 1, 2007, the Government of Canada introduced a non-refundable tax credit for parents who pay to register a child in an eligible program of physical activity. The Children's Fitness Tax Credit allows parents to claim a maximum of $500 per year for eligible fees paid for each child who is under 16 years of age.

What Type Of Activities Qualify For The Credit?

You can claim fees that are related to the cost of registering a child in an eligible program of physical activity. The Canada Revenue Agency (CRA), who administers the credit, is working with organizations to assist them in determining whether a particular program qualifies. However, in order to qualify for the tax credit, a program must be:

• Ongoing (either a minimum of eight weeks duration with a minimum of one session per week or, in the case of children's camps, five consecutive days);
• Supervised;
• Suitable for children; and
• Each of the activities must include a significant amount of physical activity that contributes to cardio-respiratory endurance plus one or more of: muscular strength, muscular endurance, flexibility, or balance.

If unsure about whether a particular activity qualifies for the credit, be sure to ask the organization running the program before enrolling your child.

What Is Required To Submit A Claim For The Credit?

You should obtain a receipt from the respective organization providing the eligible program of physical activity in which your child is enrolled. The organization will determine the portion of the fee that qualifies for the tax credit. You will not need to submit receipts when you file your tax return, but you must keep them in case they are required for verifying your claim. Receipts should be kept for six years.

How Do You Calculate The Tax Credit?

As with most other non-refundable tax credits, the Children's Fitness Tax Credit is calculated by multiplying the eligible amount by the lowest marginal tax rate, regardless of your personal circumstances. Please note that the year in which the tax credit can be claimed is determined by the date when the fees are paid, not when the activity takes place.

For more information about the Children's Fitness Tax Credit, please visit the Canada Revenue Agency website at http://www.cra-arc.gc.ca/fitness/.

Use our Find An Advisor tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.

The information contained herein is considered accurate at the time of posting. CIBC and CIBC World Markets Inc. reserve the right to change any of it without prior notice. It is for general information purposes only.

Clients are advised to seek advice regarding their particular circumstances from their personal tax advisors.