ON – New tax credit proposed for children’s activities

Ontario has joined the federal government and some of the other provinces in  providing a tax credit for expenses incurred by parents who enroll their children in extracurricular activities.

Under the proposed tax credit program, parents would be able to claim up to $500 of eligible expenses per child. The credit would apply to any eligible expenses incurred on or after January 1, 2010, meaning parents would receive a credit after they file their 2010 tax returns.

The proposed Ontario credit differs from the federal program in two respects. The provincial credit will be available for expenses incurred in relation to a broader range of activities, which would include the arts as well as sports activities. In addition, the Ontario credit will be refundable, meaning that parents could receive up to $50 per child, or up to $100 for a child with a disability.

The announcement of the proposed credit, together with details of qualifying activities, can be found on the Ontario government Web site at http://news.ontario.ca/opo/en/2010/09/helping-children-be-healthy-and-active.html.

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