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Children's Arts Tax Credit (CATC)

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Filing Your Return -> Federal and provincial art and cultural tax credits

Line 370 Federal Children's Arts Amount Tax Credit (CATC)

Income Tax Act s. 118.031, Regulations s. 9401

The 2011 Federal Budget introduced this non-refundable tax credit starting in 2011.  The legislation is included in Bill C-13, which received Royal Assent (became law) on December 15, 2011.

This tax credit is available to individuals for registration and membership costs of up to $500 per child, for prescribed programs of artistic, cultural, recreational or developmental activity for their children who are, at the beginning of the taxation year

bullet under 16 years of age, or
bullet under 18 for a child with a disability (i.e., when any person is able to claim a disability amount tax credit for the child on line 318 of the federal tax return)

The tax credit is calculated using the lowest tax rate of 15%, so the maximum tax credit per child will be $75.

An additional tax credit is available to an individual for a child with a disability.  The additional credit will be $500 x the lowest tax rate, if the total of eligible costs for that child in the year is $100 or more.  This brings the maximum tax credit to $150 for a child with a disability.

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Example of calculation of children's arts tax credit:

Total cost for prescribed programs for the child $80 $100 $200 $300 $400 $500 $600
Children's arts tax credit @15% to maximum $75 $12 $15 $30 $45 $60 $75 $75
Additional tax credit for child with disability $500 x 15% 0 75 75 75 75 75 75
Total tax credit for child with disability $12 $90 $105 $120 $135 $150 $150

The tax credit may be claimed by either spouse, or apportioned between them.

Eligible programs include the following, which are not part of a school's curriculum:

  1. a weekly program of 8 or more consecutive weeks in which all or substantially all of the activities include a significant amount of artistic, cultural, recreational or developmental activity;
  2. a program of 5 or more consecutive days, if more than 50% of the daily activities include a significant amount of artistic, cultural, recreational or developmental activity;
  3. a program of 8 or more consecutive weeks, offered to children by an organization where participants in the program may select from a variety of activities if
    1. more than 50% of the activities include a significant amount of artistic, cultural, recreational or developmental activity, or
    2. more than 50% of the time scheduled in the program is scheduled for activities that include a significant amount of artistic, cultural, recreational or developmental activity
  4. membership in an organization for 8 or more consecutive weeks if more than 50% of the activities offered to children by the organization include a significant amount of artistic, cultural, recreational or developmental activity
  5. for a program of 8 or more consecutive weeks, which does not meet the 50% requirement of (c) above, offered to children by an organization where participants in the program may select from a variety of activities, the portion
    1. that is the percentage of those activities that include a significant amount of artistic, cultural, recreational or developmental activity, or
    2. that is the percentage of time scheduled in the program that is scheduled for activities that include a significant amount of artistic, cultural, recreational or developmental activity
  6. for membership in an organization for 8 or more consecutive weeks, where the 50% requirement of (d) above is not met, the portion of membership that is the percentage of all the activities offered to children by the organization that are activities that include a significant amount of artistic, cultural, recreational or developmental activity

Artistic, cultural, recreational or developmental activity means a supervised activity suitable for children (other than a physical activity) that

bullet is intended to contribute to a child's ability to develop creative skills or expertise, acquire and apply knowledge, or improve dexterity or coordination, in an artistic or cultural discipline including:
bullet literary arts,
bullet visual arts,
bullet performing arts,
bullet music,
bullet media,
bullet languages,
bullet customs, and
bullet heritage;
bullet provides a substantial focus on wilderness and the natural environment;
bullet assists with the development and use of intellectual skills;
bullet includes structured interaction among children where supervisors teach or assist children to develop interpersonal skills; or
bullet provides enrichment or tutoring in academic subjects.

The cost of accommodation, travel, food or beverages are not included.

Any costs which qualify as child care costs must first be claimed as child care costs, with the remainder of eligible costs then claimed through the arts credit.

Any costs which qualify for the Children's Fitness tax credit cannot be claimed for the Children's Arts credit.

For more information, see the Canada Revenue Agency (CRA) Children's Arts Tax Credit (CATC) page, and the Children's Art Tax Credit video.

Provincial Arts Tax Credits

BC Child Arts Tax Credit starting in 2012.

Manitoba Children's Arts and Cultural Activity Tax Credit

Ontario Children's Activity Tax Credit

Saskatchewan Active Families Benefit

Yukon Child Fitness Credit

Yukon has the same non-refundable children's arts tax credit as the federal tax credit, with the only difference being the tax rate applied.  Yukon also provides the additional tax credit for a child with a disability.

Other Tax Credits for Children

See also:

bulletTax Information for Students
bullet Children's Fitness Tax Credit
bulletChild Amount Tax Credit
bullet links to all information on TaxTips.ca related to persons with disabilities.

Tax Tip:  Keep the receipts for your children's arts and cultural activity programs.

 

Revised: March 20, 2014

 

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