The Sport and Recreational Expenses for Children tax credit, or Healthy Living tax credit, provides an allowable tax credit of up to $500 per child to help with the cost of registering children and youth in sport or recreation activities.
Children and youth aged 17 and under who are registered in an approved organized sport, physical recreation, or physical activity program qualify for the tax credit. Only receipts from those groups who have registered with the Department of Health and Wellness are eligible.
Sport, recreation, municipal organizations, and member schools of the NSSAF (Nova Scotia School Athletic Federation), must register online with Nova Scotia Health Promotion
for the members to benefit from the tax credit. Once an organization has been registered it will be listed on the website. Organizations must register by December 31 to be eligible for that tax year.
Programs that qualify to be registered include any organized sport, physical recreation, or physical activity program that is offered to the public by the Government of Canada, or the Province of Nova Scotia. A private or not-for-profit organization registered to do business in Nova Scotia is also eligible to register with the Department of Health and Wellness. This means everything from swimming lessons to dance classes to ski memberships. What do parents/guardians need to know?
The tax credit is only available those eligible organizations that are registered with Department of Health Promotion and Protection. So please encourage your group, not-for-profit, or organization to register online before December 31.
Parents/guardians MUST keep their registration tax receipt in order to claim the credit on their tax return. A new line (line 14 – Sport and recreational expenses for children) has been added to the provincial tax return form (NS428). How much can I expect to be deducted on my income tax?
This is a tax credit not a tax rebate. A tax credit is a reduction against income tax that would otherwise be payable. A parent/guardian who claims the maximum of $500.00 per child, can expect a tax reduction of $43.95 per child. You can claim eligible expenses on line 14 of the Nova Scotia Tax and Credits form (NS428) in your tax return.