Non-Refundable Credits-Home Buyers Amount, Public Transit Amount and Children’s Art Amount

We will discuss few more Non –Refundable tax credits as mentioned above.

Home Buyer’s Amount:

This is a $750 Federal Tax Credit granted to you if you or your spouse acquired a qualifying home during the year. Qualifying conditions require that you or your spouse did not live in another home owned by you or your spouse in any of the four preceding years.

The condition of First Time Home Buyer is not required to be met in case if a disabled taxpayer buys the home for himself or you buy a home for the benefits of a relative who is eligible for a disability tax credit.

If the taxpayer is disabled, Canada Revenue Agency (CRA) will approve it if applied in the Form T2201. T 2201 Form needs to be signed by the doctor or any other professional specified in the form.

Qualifying homes can be: detached, semi-detached, town house, condominium, mobile home etc.

You need to disclose the address of the property qualifying for the credit and the closing date for the same.

If both spouses want to claim this credit, the total of this credit should not exceed $5,000

Public transit Amount:

You are entitled to this tax credit if you or your spouse paid for public transit passes (monthly or weekly). Tokens or “week end” passes are not entitled to this credit. This tax credit is a Federal tax credit offered to taxpayers in an initiative to encourage them to use public transportation for reducing pollution.

You can claim this tax credit or public transit passes bought on for yourself, your spouse and/or child under 19 years of age who is dependent on you.

It is generally beneficial for the higher income spouse to claim this credit.

In case if you use Presto cards, you are entitled to this credit if your one way rides exceed 32 in a month.

If CRA picks up your tax return for post assessment inquiry, it is not enough to send them the copies of the passes but you must send them the proof of purchase.

Children Art’s Amount:

You are entitled to a credit of maximum of $500 on your tax return if you or your spouse pay for your child under the age of 16 years, the cost of registration or membership in a prescribed program of artistic, cultural, recreational, or developmental activity. This way you can deduct the fees paid for your child for activities such as: math classes, music classes, painting classes etc.

The program should be at least for eight weeks, be suitable for the child, and be supervised.

Among the conditions of prescribed programs, the program should focus on any of the following:

1)      Developmental activity of the child,

2)      Creative or artistic skills,

3)      Cultural activity,

4)      Intellectual Skills

5)      Help child develop interpersonal skills

6)      Provide child enrichment or tutoring in academic subjects etc.

Disclaimer: Any discussion on this blog relating to the tax matters is purely for educational purposes and not taking any specific actions based the general tax rules described therein. Your tax situation could be different and as a result there could be a different tax strategy in a particular case. We do not claim the tax situations described above to be exhaustive or conclusive. In case of any specific tax situation or a problem, you are advised to seek the professional advice.