|Image by Angela Anderson-Cobb|
Here's how it works: you can deduct up to $500 worth of receipts per child for eligible activities. The amount of the tax credit will be 10% of the deducted amount. Thus, if you deduct $400 in piano lessons, you get a $40 tax credit and $500 spent on lessons will get you a $50 credit. The tax credit goes up to a maximum of $100 if a child is disabled.
It's not a lot, but a $50 tax credit per child for parents who have spent $500 and over for music lessons is nothing to scoff at.
You can go through the steps to see if your child's sports or after-school activities are eligible, and how much your deduction will net you in tax savings on the Ontario Ministry of Finance Children's Activity Tax Credit page. Remember to keep all your receipts if you claim this amount.