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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 (proposed), Regulations s. 9401
(proposed)
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
under 16 years of age, or
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 (15% for
2011), so the maximum tax
credit per child for 2011 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 2011, for a child with a disability.
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:
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;
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;
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
more than 50% of the activities include a
significant amount of artistic, cultural, recreational or
developmental activity, or
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
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
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
that is the percentage of those activities that include a
significant amount of artistic, cultural, recreational or developmental activity, or
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
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
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:
literary arts,
visual arts,
performing arts,
music,
media,
languages,
customs, and
heritage;
provides a substantial focus on wilderness and the
natural environment;
assists with the development and use of
intellectual skills;
includes structured interaction among children
where supervisors teach or assist children to develop interpersonal
skills; or
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.
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