The 2017 federal budget was released Mar 22 ’17, and enough time has now passed for pundits and experts to offer their views. Here’s one we thought particularly summed it up well.
Much like our blog on last year’s budget, we assess what this latest one means for families with kids in sports.
First the good – UH, AH, HMMM,...,
We tried; we really did, but seems there isn’t much we could find that was new or innovative for the average Canadian that has children involved in organized sports activities. Probably the best that can be said is that a lot of negative things that were expected fortunately didn’t occur—namely there was no increase in marginal tax rates. At least that’s good, right?
The not so good – LAST YEAR FOR THE FITNESS TAX CREDIT.
For tax year 2016, the Children’s Fitness Credit was reduced to a maximum of $500 (meaning families can now only get a tax credit up to $75 vs up to $150 last year). The supplemental $500 for qualifying disabled children did remain in effect. For tax years 2017 and beyond, the credit will no longer be available.
To apply for this credit one last time, your child must have been under age 16 at the beginning of the tax year in which you paid the fees for the sports program. If your child also receives the disability amount, the age limit increases to under 18. Additionally, you must have paid at least $100 in fees during the year. They must have been direct fees such as registration or equipment; you cannot include indirect fees such as amounts you paid for gasoline when you drove your child to practice.
TO SUM IT UP?
What can we say? Not much unfortunately. At least there’s still a partial tax credit for the 2016 tax year. Most have labelled this budget as a ‘work-in-progress’. Let’s just hope they continue working and have something to offer next year to families with kids in sports.
Thanks for reading.