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Get your credit for keeping kids fit

<p>I have two children, ages seven and 11 years old. They are enrolled in dance and karate. Can I claim this new amount as child care? Were there any other changes for 2007 that would reduce my income taxes?</p>

New deductions for your family



Q: I have two children, ages seven and 11 years old. They are enrolled in dance and karate. Can I claim this new amount as child care? Were there any other changes for 2007 that would reduce my income taxes?






A: There have been many changes to the tax legislation that would save most Canadians income tax dollars. With an election not far in the future, our representatives are working overtime to get our votes. Fees for sporting activities such as karate, gymnastics, dance, etc., are not deducted as child care but can be claimed under the new Children’s Fitness Tax Credit on Schedule 1 of your Income Tax return.





Individuals that prepare their own tax return should pay a visit to the Canada Revenue Agency’s website for some assistance. Alternatively, consult a professional tax adviser. Please do not use “part-time experts” that prepare personal income tax returns during the tax season on evenings after their five-billion-served job.





Keep the following when preparing your 2007 tax return:





Basic Personal Amount: Individual taxpayers may earn up to $9,600 and not pay any income taxes. New increased amount.





Spousal (Common-law) claim: Increased threshold to $9,600 for spouse. New increased amount.





Canada Employment Credit: Employees can claim $1,000 tax credit. New increased amount (full year).





Public Transit Pass credit: Employees are entitled to claim cost of public transit passes such as subway, buses, ferries, etc. In 2006, only monthly passes qualified. For 2007, claims now include weekly passes purchased over four consecutive weeks. The people spoke and Prime Minister Stephen Harper listened. New inclusive weekly passes.





Amount for children born 1990 or later: Families may claim $2,000 tax credit per child. New.





Children’s Fitness Tax Credit: Taxpayers can claim cost for registering children in physical activities such as gymnastics, volleyball, taekwondo, etc. Maximum is $500 per child under 16 years old. New.





Working Income Tax Benefit: Low-income taxpayers should complete and file Schedule 6 to qualify for refundable tax credit. New.





For other tax credits or deduction, speak to a professional accountant/tax adviser.




choochonghcga@yahoo.ca





Henry Choo Chong, CGA provides professional accounting and taxation solutions for individuals, businesses and corporations. Henry can be reached at 416-590-1728, ext. 304. E-mail all questions to Money Matters: choochonghcga@yahoo.ca.

 
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