To help parents with the cost of enrolling their children in activities that encourage them to be healthy and active, the Ontario government has passed legislation to introduce a new Children’s Activity Tax Credit. This would be the only tax credit in Canada provided for a comprehensive range of children’s activities.
Under the proposed tax credit, parents and guardians would be able to claim up to $500 of eligible expenses per child. They would receive a refundable tax credit worth up to $50 per child under 16 years of age, or up to $100 for a child with a disability under age 18.
The tax credit would be refundable, unlike the federal Children’s Fitness Tax Credit and similar tax credits in other provinces. Because the credit would be refundable, low-income parents who pay little or no income tax would benefit. The maximum amounts that may be claimed for the credit would rise annually with the cost of living through indexation.
Parents would be able to claim the tax credit on their annual income tax return, beginning with the 2010 tax year. Eligible expenses incurred on or after January 1, 2010 would qualify for the credit.
This new permanent tax credit would provide about $75 million each year to assist with the costs of enrolling children in extracurricular activities and would benefit over 1.8 million children in about 1.1 million Ontario families.
This is great news for those already enrolled at Kindermusik of Cambridge/KW and for those who have been holding off because of finances. Finally, the arts and families get a break!
For more information about our programs and what Kindermusik can do for your child, click here.