Sadly 2016 is the last tax year that we will be able to claim the Fitness and Arts Tax Credit. They were popular tax credits among parents with disabled children as there was a supplemental credit of $500 for children eligible for the Disability Tax Credit.
Fitness Tax Credit
The maximum eligible amount that may be claimed for 2016 has been reduced to $500 (down from $1,000). The supplemental $500 figure remains intact.
For those who have not claimed this credit before, the amount is increased by $500 as long as at least $100 claimed. In other words, if you have $200 worth of eligible receipts, the claimed amount would be $700. Most tax software will automatically add the $500 supplement as long as you have indicated that a T2201 has been filed.
Arts Tax Credit
The maximum eligible amount for 2016 has been reduced to $250 (down from $500). The $500 supplement remains intact and works the same as for the Fitness Tax Credit.
Both of these tax credits will be eliminated for 2017 and sadly the $500 supplement will disappear at the same time. The Federal Government has not announced any changes that will make up for this loss.
It is true that for most kids there will be an increased amount through the new Canada Child Benefit. This is fine for a typical kid, but there is nothing now to recognize the high barriers that we have getting our children into sports and arts classes.