Principal Issues: 1. Will the cost of a uniform included in a program's registration fee affect the calculation of the fitness tax credit? 2. Will a low-income parent's receipt of financial assistance or a discounted registration fee affect the individual's eligibility for the credit?
Position: 1. In general, no. 2. No
Reasons: 1. Provided that the uniform/clothing is used for the program and has little or no residual value, then the cost of the clothing will not have to be removed from the registration fees. 2. Eligibility is not affected. However, because the formula for calculating the fitness tax credit makes reference to 'an amount paid in the tax year by the individual, only the amount actually paid may be used to calculate the credit.'