Tutor Doctor | Apr 20, 2012

Canadian government provides generous tax credits for tutoring

Categories: K-12, K12

Every parent wants to provide their children with all the tutoring help they need. For many Canadian parents, providing extra-mural activities for their children’s development has not been possible due to financial constraints. Now parents are getting a welcome reprieve from the costs of tutoring and other developmental activities thanks to two tax credits offered by the Canadian Economic Action Plan. The Children’s Fitness Credit and the Children’s Art Credit refunds parents a portion of the money they use to pay for tutoring and other activities.

Children’s Art Credit

If your student is enrolled in an activity such as fine arts, performing arts, outdoor wilderness training, learning a language, studying a culture, music or tutoring, you can get a tax refund from the government come tax time. The credit is a non-refundable 15 percent up to $500. Through the tax credit, the government hopes to increase participation in activities that help to develop the creative skills of children in artistic or cultural activities, encourage greater natural and wilderness awareness and improve intellectual skills by funding tutoring vital to the academic development of students. This funding of academic development incorporates one-on-one tutoring companies like Tutor Doctor. If your child is struggling, has learning problems or wants to excel at their studies, one-on-one tutoring is an excellent way to help them succeed. If your teen is preparing for the SAT or ACT exams, then one-on-one tutoring gives them the personal attention they need to get the best college entrance scores. For a comprehensive look at the Children’s Art Credit, watch the video here.

Children’s Fitness Credit

Effective since January 1, 2007, the Children’s Fitness Credit focuses on promoting the health and development of children. While tutoring, sports and cultural activities contribute positively to children’s development, parents are often not able to afford these extra-mural programs. Now help is at hand; the Canadian Government has instituted the Children’s Fitness Credit to help alleviate the financial burden and encourage parents to enroll their children in programs that contribute to their academic and cultural development as well as their health and wellbeing. Like the Arts Credit, parents get a 15% non-refundable credit for children’s activities up to $500.

An example of how the Arts and Fitness credits works from the Canadian Economic Action Plan website:

Rick and Andrea have two young children, Adam and Chloe. Every year, Adam plays in a minor hockey league and attends a week-long music camp in the summer, while Chloe plays competitive soccer and takes art lessons. With the introduction of the Children’s Arts Tax Credit, Rick and Andrea may claim between them up to $500 for Adam’s music camp and up to $500 for Chloe’s art lessons—this is in addition to eligible expenses of up to $500 they may claim for Adam’s hockey and up to $500 for Chloe’s soccer under the Children’s Fitness Tax Credit. As a result, in 2011, Rick and Andrea may claim a credit on up to $2,000 in expenses for their children’s activities.