Ontario Childrenís Activity Tax Credit Approved

Legislation that will give Ontario parents of active children a refundable tax credit has passed into law. This will put up to $50 per child age 16 and under, and up to $100 per disabled child age 18 and under, directly into the pockets of families, by filing a 2010 tax return. The costs of both fitness and non-fitness activities are eligible back to January 1^st, 2010.

According to the Ontario Finance Department, the following are eligibility criteria:

Fitness activities: the same as for the federal Children's Fitness Tax Credit; that is, the activities must require a significant amount of physical activity that contributes to cardio-respiratory endurance, plus one or more of muscular strength, muscular endurance, flexibility, and balance.

Non-fitness activities must fall under one of the following categories:

• Instruction in language, music, dramatic arts, dance and visual arts.
• Activities with a substantial focus on wilderness and the natural environment.
• Structured interaction among children where supervisors teach or help children develop interpersonal skills.
• Enrichment or tutoring in academic subjects.
• This tax credit would not support programs that promote illegal activities.

ADDITIONAL EDUCATIONAL RESOURCES: Distinguished Advisor Workshops January 2011, which will discuss personal tax changes in detail.