Canadian Children's Arts Tax Credit
The Canadian Children's Arts Tax Credit is a non-refundable tax credit to encourage the participation of children in artistic, cultural, recreation and development programs. A wide variety of programs are eligible for this tax credit, including those in fine arts, music, performing arts, wilderness training, language training, studying a culture and tutoring. Parents can claim up to $500 in eligible fees for enroling a child under 16 at the beginning of the year in an eligible arts program. For children with disabilities, an additional amount of $500 can be claimed if the child is under the age of 18 at the beginning of the tax year. The Children's Arts Tax Credit began in the 2011 income tax year.
Programs Eligible for Children's Arts Tax Credit
The programs eligible for this tax credit cover a broad range of activities that contribute to a child's development but are not covered by the Children's Fitness Tax Credit. Examples include activities as diverse as crafts, chess, Scouts and Girl Guides, photography, public speaking and language training. Programs that are part of the school curriculum are not eligible, and the Canada Revenue Agency (CRA) maintains the final say on program eligibility.
Three things the programs must be are
- ongoing - running a minimum of at least once a week for eight consecutive weeks or running on five consecutive days
- supervised, and
- suitable for children.
Expenses Eligible for Children's Arts Tax Credit
Expenses eligible for the Children's Arts Tax Credit are
- fees paid for registration and membership, including rental of facilities and equipment. If parents have to buy equipment from third-party suppliers or through the program, those expenses are not eligible.
- Related costs such as accommodation, travel or food do not qualify for the income tax credit.
- Amounts claimed for any other income tax credit are also not eligible.
Receipts for Children's Art Tax Credit
Be sure to ask for and obtain a receipt for fees paid for an eligible arts program. You do not have to file the receipts with your Canadian income tax return, but keep them in case the Canada Revenue Agency asks to see them.
Information on the receipts should include:
- name and address of the organization and the name of the program
- amount received, and the amount eligible for the Children's Arts Tax Credit, as well as the date received and the mane of the person who paid
- child's name and date of birth
- authorized signature (not required for electronically generated receipts).
How to Claim the Children's Arts Tax Credit
For a related Canadian income tax credit, see Children's Fitness Tax Credit.