Save Money and Stay Healthy: How to Claim the Healthy Living Tax Credit in Nova Scotia

Save Money and Stay Healthy: How to Claim the Healthy Living Tax Credit in Nova Scotia

Living a healthy lifestyle can be expensive, but it’s worth the investment in yourself and your well-being. Did you know that you can claim a tax credit for the expenses you incur in maintaining a healthy lifestyle in Nova Scotia? The Healthy Living Tax Credit is available to individuals who incur eligible expenses on or after January 1, 2019. In this article, we’ll explore what the Healthy Living Tax Credit is and how you can claim it to save money and stay healthy.

What is the Healthy Living Tax Credit?

The Healthy Living Tax Credit is a tax credit available to Nova Scotians to help offset the costs of physical activity and healthy living expenses. It was introduced by the Nova Scotia government in 2019 to encourage physical activity and healthy living among its citizens. The tax credit is a non-refundable credit, which means that it can reduce the amount of tax you owe, but it cannot give you a tax refund if you do not owe any tax.

What Expenses are Eligible?

To be eligible for the Healthy Living Tax Credit, you must have incurred eligible expenses. These eligible expenses include:

– Fitness and exercise programs or memberships, such as gym memberships, yoga classes, and personal training sessions.
– Sports and physical activity programs, such as soccer, basketball, and hockey.
– Recreation programs and memberships, such as swimming lessons and skating rinks.
– Children’s physical activity programs, such as afterschool programs and summer camps.
– Healthy living products, such as bicycles, helmets, and pedometers.

It’s important to note that the expenses must be incurred in the tax year, on or after January 1, 2019, to be eligible for the tax credit. Additionally, only the eligible expenses that exceed $500 can be claimed, and the maximum credit is $250 per year per person.

How to Claim the Healthy Living Tax Credit

To claim the Healthy Living Tax Credit, you must keep a record of your eligible expenses and enter them on your tax return. If you file your taxes online with NETFILE, you can claim your Healthy Living Tax Credit directly on your tax return. If you file a paper return, you must complete Schedule NS(S11), Nova Scotia Credits, and attach it to your tax return.

It’s important to keep all receipts and invoices for your eligible expenses in case the Canada Revenue Agency (CRA) asks for evidence of your claims.

Case Study: John and Sarah

John and Sarah are a Nova Scotia couple who are passionate about staying healthy and active. In 2020, they incurred the following eligible expenses:

– Gym memberships for each of them ($100/month each, $1,200/year total)
– Yoga classes for Sarah ($15/class, 2 classes/week, 52 weeks/year, $1,560/year total)
– Soccer league fees for John ($300/year)
– Bicycle for John ($500)

Their total eligible expenses were $3,560, and because this amount exceeds the $500 threshold, they can claim a Healthy Living Tax Credit of $250 each, for a total of $500. This will reduce their provincial tax liability by $500.

Conclusion

The Healthy Living Tax Credit is a great way to save money while staying healthy and active. By keeping track of your eligible expenses and claiming the tax credit on your tax return, you can offset the costs of physical activity and healthy living expenses. Remember to keep all receipts and invoices for your eligible expenses in case the CRA asks for evidence of your claims. Happy healthy living!

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