Children’s Fitness Tax Credit

Notice to the reader

The legislative measures below have received Royal Assent.

Changes to the Children’s Fitness Tax Credit were announced in Budget 2016 under Children’s Fitness and Arts Tax Credits.

What is the Children’s Fitness Tax Credit?

The Children’s Fitness Tax Credit allows you to claim eligible fees paid in the year up to a maximum of $500 per child (an additional amount of $500 is available if the child is eligible for the Disability Tax Credit and a minimum of $100 has been paid for eligible fees in the year). Eligible fees include an amount paid related to the cost of registration or membership for your or your spouse's or common-law partner's child in a prescribed program of physical activity. The child must have been under 16 years of age (or under 18 years of age if eligible for the disability tax credit) at the beginning of the year in which an eligible fitness expense was paid.

How is the Children’s Fitness Tax Credit calculated?

The Children’s Fitness Tax Credit is calculated by multiplying the lowest personal income tax rate (15% in 2014) by the eligible fees for each child. The eligible fees (up to the maximum amount per child) are currently reported on line 365 of Schedule 1, Federal Tax.

Can I currently receive a refund for my Children’s Fitness Tax Credit?

Currently, the Children’s Fitness Tax Credit is a non-refundable tax credit.

What are non-refundable tax credits?

Non-refundable tax credits, such as the basic personal amount and the age amount, reduce your federal tax. However, if the total of these credits is more than your federal tax, you will not get a refund for the difference.

2014 Tax Year - Increase to Maximum Amount

How is the maximum amount for the Children’s Fitness Tax Credit changing?

On October 9, 2014, a proposal was announced to increase the maximum amount per child to $1,000 for the 2014 and subsequent tax years. You will be able to take advantage of the increased maximum amount when you file your 2014 income tax and benefit return in the upcoming filing season.

Will the additional amount of $500 related to children eligible for the Disability Tax Credit be increased?

The proposal does not include an increase to the additional amount of $500 available if a child is eligible for the Disability Tax Credit and a minimum of $100 has been paid for eligible fees in the year.

2015 Tax Year – Refundable Children’s Fitness Tax Credit

How is the Children’s Fitness Tax Credit changing?

On October 9, 2014, a proposal was announced to convert the Children’s Fitness Tax Credit to a refundable tax credit for 2015 and subsequent tax years.

How will I claim the refundable Children’s Fitness Tax Credit?

Subject to Royal Assent of the enabling legislation, for the 2015 tax year, the personal income tax and benefit return will be revised to include new lines 458 and 459 on page 4 to account for the refundable credit. Line 365 will no longer appear on the Schedule 1, Federal Tax.

Where can I get more information about the proposed changes to the Children’s Fitness Tax Credit?

The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its webpages often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please consult the Department of Finance Canada's announcement for further details.

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