Every year, our team makes a point of sharing with you an informative document on the different Canadian policies and tax credits that can save you money during the year. If your child participated in sporting or artistic activities or was in a camp this summer, it's very likely that you are eligible for some tax credits.
Federal tax credits
The federal children's fitness tax credit is refundable and it allows you to claim up to a maximum of $500.
The federal children's arts amount tax credit is non-refundable and it allow you to claim up to a maximum of $250.
Please note: a refundable credit reduces the amount of taxes payable at the end of the year. In addition, if the credit is greater than the amount of tax payable, the person will still be entitled to it.
A non-refundable tax credit also reduces taxes payable. However, they are lost if the amount of credit is greater than the amount of tax payable.
Provincial tax credits
1. Tax credit for children's activities
This credit is can be claimed by parents who have registered a child in a program that includes physical, artistic, cultural or recreational activities. It will be equal to 20% of the expenses, up to a maximum of 400$ (so for a 400$ fee you receive 80$ in tax credit). Amilia doesn't generate receipts for this tax credit, however, all your invoices are available on your Amilia account, under the billing tab. It is important to keep these invoices in order to provide them to the government, upon request. Here are the conditions to be eligible for this credit:
2. Tax credit for childcare expenses (RL-24 slip)
This statement is produced by the organization and entitles you to a childcare tax credit. The organization can be a daycamp or a summer camp for example. The tax credit will account for between 26% and 75% of expenses incurred, depending on the family income. To be eligible, the child must be under the age of 18. Furthermore, the fees must have been paid before the organization generate the statements.
Don't forget to stay up-to-date with changes in federal and provincial taxation policies. Consult the resources available for a better understanding of current tax policies: websites (here or here), brochures, guides, etc. The economic context often obliges governments to modify or improve certain.
If you would like to get more information about the procedures to get your RL-24 slip or your federal tax
receipts trough your Amilia account, follow this link :
Please note that the above information is provided for information purposes only.