In calculating Federal taxes, each taxpayer is allowed as a credit against the Federal tax, monetized amounts for such items as the personal amount, married amount, medical expenses, donations, and tuition, etc.  There has been some recent, social engineering through the Income Tax Act that may be of some interest to our readers.  These include the Adoption Expense Credit, Public Transit Passes Credit and the Children’s Fitness Credit. 

Adoption Expense Tax Credit 

Beginning in 2005, the Income Tax Act was amended to provide for a non-refundable tax credit for up to $10,000 for eligible adoption expenses as follows:

• Fees paid to an adoption agency, which is licensed by a Provincial or Territorial government;
• Court costs, legal and administration expenses;
• Reasonable travel and living expenses of the child and the adoptive parents;
• Document translations fees;
• Mandatory fees that are paid to a foreign institution;
• Other reasonable and required fees.

These expenses must be incurred within the adoption period that begins when a file is opened and ends at the time of the adoption.  Further, an eligible child is one who has not achieved the age of 18 years at the time that the adoption is completed.
 

Public Transit Passes Credit

Beginning July 1, 2006, a non-refundable tax credit will be allowed for all amounts that are paid for an eligible public transit pass.  To be eligible, the pass must be for at least a one-month period, and must have been purchased for use by the taxpayer, spouse or child.  Receipts must be maintained for verification.

Children’s Fitness Credit

Beginning in 2007, a non-refundable tax credit will be available for eligible fees of up to $500.  The child must be enrolled in an eligible program of physical activity, and be under the age of 16 years.  While an “eligible program of physical activity” has yet to be defined, it would presumably include activities that promote cardio-vascular endurance, muscular strength, flexibility and balance.