Children's Activity Tax Credit (Ontario)
See also: Children's Fitness CreditIntroduced in 2010, the activity credit is a refundable tax credit calculated as 10% of eligible expenses up to $500 per child ($1000 for a disabled child) to a maximum of $50 ($100 for a disabled child). Children must have been under the age of 16 at the beginning of the year (or under 18 if disabled).
Eligible expenses are those paid after January 1st 2010 for a ‘Qualifying Activity’.
Qualifying activities must be:
- a program that is not part of a school’s curriculum and that is:
- weekly with a minimum duration of eight weeks; or
- daily with a minimum duration of five consecutive days; or
- a membership in an organization that lasts at least eight weeks and that allows children to choose from a variety of activities.
Activities eligible for the Ontario credit include fitness activities, as well as certain non-fitness activities. Fitness activities include those eligible for the federal credit (see Children’s Fitness Tax Credit - Federal). Non-fitness activities include the following:
- instruction in music, dramatic arts, visual arts, or dance;
- language instruction;
- activities that focus on wilderness and the natural environment;
- structured interaction among children where supervisors teach or help children develop interpersonal skills;
- activities that focus on helping children develop and use intellectual skills; or
- enrichment or tutoring in academic subjects.
Additionally, activities must be supervised and be suitable for children. Examples include choir, cooking, chess, crafts, first aid, gardening, girl guides, etc. This list is not exhaustive.
Eligible expenses include registration and membership fees, as well as fees paid to cover the cost of uniforms, equipment used in common, incidental supplies, facility rentals, referees and judges, instruction and administration.
Cost of accommodation, travel, food and beverages as well as the purchase or rental of equipment for exclusive personal use are not eligible.
Eligible fees are reduced by any reimbursements that you receive, unless you claim the reimbursement as income on your return.
Activities included in the Children’s Activity Tax Credit may also be eligible for the Federal Children’s Fitness Tax Credit.
When expenses are eligible for a deduction for child care and also give entitlement to the children’s activity amount, the expenses must be deducted as child care expenses first. Any unused portion can be claimed for the children’s activity tax credit as long as the other conditions are met.
