Understanding Provincial Credits for Children’s Activities in Canada

Children’s Sports and Arts Tax Credit (Nova Scotia)

The Children’s Sports and Arts Tax Credit in Nova Scotia is designed to help alleviate the financial burden of enrolling children in sports and arts programs. This refundable tax credit provides up to $500 per child for eligible expenses, such as membership fees, uniforms, and equipment.

Purpose & Benefits

The main objective of this credit is to encourage children’s participation in activities that support physical health, creativity, and overall development. By offsetting some of the financial costs, the program aims to promote participation in sports and arts, fostering community engagement and skill development.

Eligibility

Age Criteria: The credit applies to children under the age of 18.

Eligible Programs: These can include sports leagues, arts camps, music lessons, theatre classes, and other cultural programs that require a registration fee or membership.

Eligible Expenses: Parents and guardians can claim expenses related to:

Registration fees for sports and arts programs

Uniforms or other necessary clothing/equipment required for the activity

Sporting or artistic equipment necessary for participation

Ineligible Expenses: Expenses that are not eligible for the credit include:

Travel and accommodation costs

Food and beverage expenses

Non-program-specific equipment (e.g., personal sportswear not required for the activity)

Claiming the Credit

The credit is claimed when filing the personal income tax return for the relevant year. Taxpayers do not need to submit receipts with their income tax return, but they must retain them for future reference. The Canada Revenue Agency (CRA) may request receipts for verification purposes, and taxpayers are advised to keep detailed records of all eligible expenses.

Active Families Benefit (Saskatchewan)

The Active Families Benefit is an annual refundable tax benefit introduced to assist Saskatchewan families with the costs associated with their children’s participation in sports, cultural, and recreational activities. Families can receive up to $150 per child, or $200 per child if the child has a disability. The benefit is aimed at promoting health and wellness by supporting children’s involvement in various physical, cultural, and recreational programs. It is available to families with an annual gross income of up to $60,000.

Eligibility

Income Criteria: Families with an annual gross income of $60,000 or less are eligible.

Child Age: The child must be 18 years of age or younger as of the last day of the taxation year.

Eligible Activities:

Sporting Activities: Includes organized, competitive sports that involve physical training and mental preparation. Examples include hockey, soccer, gymnastics, and swimming.

Recreational Activities: Includes activities designed to refresh and entertain, such as hiking, dance classes, or art workshops.

Cultural Activities: Includes activities that engage children with arts, heritage, or multiculturalism, such as painting lessons, music classes, or drama clubs.

Ineligible Activities: Activities that are part of a school’s curriculum or childcare programs are not eligible. The credit does not cover costs for attending major sporting events, movies, or family entertainment activities. Family-run programs do not qualify for the benefit.

How to Claim

Families must file their personal income tax return with the Canada Revenue Agency (CRA) to claim the benefit. A special form or schedule will need to be completed as part of the income tax return package. While receipts are not required for submission, families must retain them as they may be requested by the Government of Saskatchewan or the CRA for verification purposes.

Wellness Tax Credit (Prince Edward Island)

The Wellness Tax Credit is a tax incentive introduced to help families in Prince Edward Island (PEI) reduce the financial burden of enrolling children in wellness-promoting activities. The credit is worth up to $500 per child annually for activities that focus on physical and mental well-being. Effective from January 2024, the maximum credit has increased to $1,000 per child, providing greater support for families seeking to engage their children in wellness-based programs.

Eligible Activities

Sports programs like soccer, swimming, or tennis.

Arts and Cultural Programs that emphasize mental wellness, such as drama classes, music lessons, and art workshops.

Recreational Programs like summer camps, outdoor adventure activities, or after-school physical fitness classes.

How to Claim

The credit is claimed when filing personal income taxes. Families need to keep receipts for eligible activities but do not need to submit them with their tax return. They are advised to retain these for possible verification by the CRA.

Physical Activity Tax Credit (Newfoundland and Labrador)

The Physical Activity Tax Credit in Newfoundland and Labrador provides families with financial assistance for their children’s participation in physical fitness programs. Families can claim a refundable credit worth up to $2,000 annually in eligible fitness expenses, and the credit is calculated based on 17.4% of the total eligible amount, resulting in a refund for eligible expenses.

Eligible Activities

Sports programs (e.g., hockey, basketball, soccer, swimming)

Recreational programs (e.g., dance classes, yoga, tennis lessons)

Fitness training activities aimed at improving physical health and well-being.

Additional Benefit for Children with Disabilities

Children with disabilities are eligible for a higher benefit. The credit increases to $348 per year if expenses exceed $100.

How to Claim

Families must claim the credit when filing their personal income tax return. Receipts for all eligible fitness expenses should be kept but are not required for submission with the tax return. However, families should ensure that the receipts contain all the necessary details to facilitate any future verification requests by the CRA.

Fitness Tax Credit (Manitoba and Yukon)

Manitoba and Yukon offer a Fitness Tax Credit to help families with the cost of fitness activities for children and young adults under the age of 24. Families can claim up to $500 per child or young adult per year. This credit applies to a broad range of fitness activities aimed at improving physical health and endurance.

Eligible Activities

Sports programs that involve physical training, such as hockey, baseball, or soccer.

Fitness activities such as swimming lessons, karate, dance, and aerobics.

Recreational programs like hiking, rock climbing, or cycling.

Additional Benefits for Children with Disabilities

Children with disabilities are eligible for a higher benefit. If they spend more than $100 on eligible activities, the credit increases by an additional $54.

How to Claim

The credit can be claimed when filing the personal income tax return. Families should retain receipts that outline the cost of eligible activities. These receipts do not need to be submitted with the return but must be kept for verification purposes.