CAMP CREDITS
TAX BREAK EASES COST OF SUMMER FUN
Shocked at the sticker price of summer camps in Calgary and area? Last summer I wrote about finding affordable day camps (you can read the story at blog.moneysmartmom.ca/ daycamps), and explained how the Government of Canada’s Children’s Fitness Tax Credit helps parents afford the cost of camps with a physical activity component.
Since that article was printed, the government has introduced a second program to help parents, the Children’s Arts Tax Credit. This means that parents whose kids would rather spend the summer with their nose in a book than their feet in cleats can also save money on weekly camps.
At 4Cats Inglewood, owner Christin Dewald appreciates the introduction of the credit, and believes it shows that our society understands the importance of creativity in the development of children. “The children who attend our classes have the opportunity to use their whole brain. We see children develop new skills like problem solving and risk taking. As a result, these kids enjoy increased self-esteem. Also, art camps are just plain fun! With art, kids are allowed to truly express themselves.”
Like the fitness credit, the Children’s Arts Tax Credit is a non-refundable tax credit that reduces the amount of tax you owe. Parents may claim up to $500 per year for eligible art expenses paid for each child who is under 16 years of age at the beginning of the year in which the expenses are paid. The credit is calculated by multiplying the total expense by the lowest marginal tax rate, 15 per cent, not your actual tax rate.
Claiming the maximum for one of the programs will result in a $75 credit per child, per year. You can submit your expenses for both activities, which can result in a $150 credit per child, per year.
To qualify for the Children’s Arts Tax Credit, the activities must contribute to the development of creative skills or expertise in artistic or cultural activities. Eligible expenses are fees paid for the cost of registration or membership. The program must be ongoing (either a minimum of eight consecutive weeks long or five consecutive days long), be supervised and be suitable for children.
For the Children’s Fitness Tax Credit, expenses must be for the cost of registration or membership of a child in a physical activity program. It must meet the same criteria of being ongoing, supervised and appropriate for kids. In this case, it must include a significant amount of physical activity that contributes to cardio-respiratory endurance, plus one or more activity that contributes to muscular strength, muscular endurance, flexibility, or balance.
If you’re unsure whether the program you’re considering is eligible for the credit, simply ask the company or organization before registering your children. They’ll let you know how much of the fee that qualifies for the tax credit, and will provide a receipt clearly indicating the eligible portion.
Don’t forget! Most day camp fees may also be claimed under the child care deduction, but doing so makes the fee ineligible for the fitness and art tax credit. Check with your accountant to determine where to claim each expense.