Child Fitness Tax Credit Increased for 2014

On October 9, 2014 the Federal government made good on an April 2011 election promise and increased the Child Fitness Tax Credit to $1,000 from the previous maximum of $500. 

In the case of an individual with a child with a disability, the limitation is increased to $1,500.

With this increase, which is retroactive to January 1, 2014, Canadian taxpayers will now see a $75 increase in the tax credits, assuming that they are able to maximize the credit.

Effective with the 2015 calendar year this credit will become a refundable tax credit, in which case low income families utilizing the Child Fitness Amount will receive a refund cheque for the balance of the Child Fitness Credit not required to reduce their income tax bill for the year.

It is important to note that this is a Federal credit and currently there has been no indication that the provinces will mirror the increased credit. In addition, the Children’s Arts Tax Credit remains unchanged.

Reported by Alan Rowell, MFA and DFA-Tax Services Specialist. Alan is based in Stoney Creek, ON and will be a featured speaker on the upcoming November DAW tour.