New Child Tax Credit: Are You Taking Advantage?

Parents with children in sports programs with fees have been able to benefit from a tax credit for many years.

It used to be the credit covered physical fitness activities only. Now, the credit has been expanded. Parents whose children are active in paid artistic, cultural, recreational, and developmental programs will be getting the same benefit.
Eligible programs include fine arts, music, performing arts, outdoor wilderness training, learning a language, studying a culture, tutoring, and more. When parents claim the children's arts tax credit-up to a maximum of $500 of the cost of programs, they can save as much as $75 at tax time per child claimed, Canada Revenue Agency says.

You can read all technical details, or you can ask your tax advisor to concentrate on Line 370 of your return.

"Parents whose children participate in paid artistic, cultural, recreational, and developmental programs will now enjoy the same benefit as parents whose children participate in paid programs of physical activity," said Gail Shea, Canada's National Revenue Minister.

"Our government believes whether a child is inspired by (Canada's adolescent crooner) Justin Bieber, (Canadian rock and pop band) Hedley, (Canadian film and TV actor) Ryan Reynolds, (former NHL player and long-time Vancouver Canucks star) Trevor Linden or (Canadian snowboarding champion and Olympic winner) Maelle Ricker, parents should receive a tax credit to help pay for the programs that will help their children live out those dreams," she added.

Shea made the statements while touring British Columbia. She hails from Prince Edward Island, and she's smart: all of the names mentioned are linked to British Columbia one way or another. Making the announcements in arts galleries and dance studios must have helped the cause, too.

The eligibility list is perfectly straightforward. Look it up, bookmark it, print it off, attach it to your fridge door but, most importantly, use it.

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