New Tax Credit for 2007 Tax Year

While this won't do you any good for your 2006 taxes, I've just learned that there is a new federal tax credit for a Children's Fitness Amount for 2007, with a special little bonus attached for children with disabilities.

You can claim to a maximum of $500 per child, the fees paid in 2007 that relate to the cost of registering your or your spouse or common-law partner’s child in a prescribed program of physical activity. The child must have been under 16 years of age at the beginning of the year.

And it appears that, unlike the Nova Scotia tax credit, the organization does not have to be registered or approved by government in order for you to claim the fees. It's only necessary that the activity meet the relevant definition.

But what's this special bonus for children with disabilities, you ask?

Children with disabilities – If the child qualifies for the disability amount and is under 18 years of age at the beginning of the year, an additional amount of $500 can be claimed provided that a minimum of $100 is paid on registration or membership fees for a prescribed program of physical activity.

That's right, Virginia, there is a Santa Claus ... if you're eligible for the maximum amount of the tax credit ($500), you can claim double that amount if your child qualifies for the disability tax credit. And even if you're not eligible for the full amount ($500), you can still claim an additional $500 credit provided your child qualifies for the disability tax credit and you spent $100 on fees for a prescribed program of physical activity.

And note that while the regular tax credit is only available for children under the age of 16 years, the extra credit for children with disabilities is available to children under the age of 18 years.