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Making Kids' Activities A Little More Affordable

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Making Kids' Activities A Little More Affordable

Children's Activity Tax Credit To Benefit More Than A Million Families

Ministry of Finance

The McGuinty government is helping Ontario families with the cost of activities that keep their kids healthy and active.

Through the new, permanent Children's Activity Tax Credit, parents can claim up to $500 in eligible expenses and get a refundable tax credit of up to $50 for each child under the age of 16, and up to $100 per child under the age of 18 who has a disability.

As part of the Open Ontario plan, this tax credit is the only one in Canada that covers a wide range of activities, from hockey, music or art lessons to dance class. In addition, the credit is fully refundable, meaning that all Ontario families can benefit, including those that pay little or no income tax. All activities paid for in 2010 are eligible for the credit - but parents must keep receipts to claim the credit.

Quick Facts

  • The Children's Activity Tax Credit will provide approximately $75 million to about 1.1 million Ontario families each year, benefiting 1.8 million children.
  • To receive this tax credit, parents must keep any receipts from enrolling their children in eligible activities since January 1, 2010 and file a 2010 income tax return.
  • Physical activities that are eligible for the federal children's fitness tax credit will automatically be eligible for the Children's Activity Tax Credit. Non-fitness activities, such as tutoring, Scouts and Girl Guides and drama, also will be eligible.
  • Through the Open Ontario plan, the government is providing targeted tax relief measures to help Ontario families, including the Northern Ontario Energy Credit, the Ontario Energy and Property Tax Credit and the Ontario Clean Energy Benefit.

Additional Resources

Quotes

“We're making it easier for moms and dads to get their kids involved in sports, arts and other activities that keep them healthy and active. By making this tax credit retroactive and refundable and expanding the list of eligible activities, we're putting money into the pockets of more Ontario families.”

Dwight Duncan

Minister of Finance

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