Canada: Canada Promotes Back-To-School Tax Reliefs
28 August 2013
Posted by: Author: Mike Godfrey
Author: Mike Godfrey
With children gearing up for the return to school, the Canadian Government has urged families to take advantage of the range of tax reliefs available.
Finance Minister Jim Flaherty acknowledged that "families are again facing the costs of textbooks, bus passes and extracurricular activities." He stressed that, recognizing this, the Government "offers tax relief to help families save more of their hard-earned money."
Among the reliefs on offer are the children's fitness and children's arts tax credits. Both allow parents to claim a non-refundable 15 percent tax credit on expenditure of up to CAD500 for registration fees spent on specified activities.
Non-refundable tax credits are available at the same rate for the cost of tuition and enrollment in post-secondary education programs, and on the interest paid on loans for such courses. Money can be claimed back for certain public transport costs, and the registration education savings plan provides incentives to save for a child's education on a tax-assisted basis.
According to Revenue Minister Kerry-Lynne D. Finlay, the tax reliefs introduced by the Harper Government can save the average family more than CAD3,200 a year in taxes.