The 2011 Tax filing time is approaching and SmartCanadian will bring you some tips on what has changed compared to the previous years.
One of the new additions from 2011 is the ‘Children’s Art Tax Credit’ (CATC).
You can claim a maximum of 500 dollars paid as refundable tax credit per child off the fees paid in 2011 related to the cost of registration or membership of your, your spouse’s or your common-law partner’s child to develop ‘artistic, cultural, recreational or developmental activity’.
Programs that can be claimed:
Language Programs, Public Speaking, Chess, Music, Scouting, Girl Guides, Crafts, Painting, Drama, Photography, Pottery and Tutoring.
Criteria for the Children’s Art Tax Credit (CATC)
- The child must have been under 16, or under 18 if he or she receives Disability Tax Credit, at the beginning of 2011.
- The Program does not fall under a category for which a claim can be made under the Federal Children’s Fitness Amount.
- The Program is not part of a school curriculum.
- It has to be ongoing, with sessions at least once a week and lasting a minimum of eight weeks, or a minimum of five consecutive days.
- It has to be supervised, and
- It has to be suitable for children.
CATC Application Should Meet At least One of the Following Criteria:
- The program should contribute to the development of creative skills or expertise in an artistic or cultural activity;
- The program should provide a substantial focus on wilderness and the natural environment;
- The program should help the child develop and use particular intellectual skills;
- It should include structured interaction among children where supervisors teach or help children develop interpersonal skills; or
- It should provide enrichment or tutoring in academic subjects.
Costs Not Covered for CATC
- Traveling, accommodation and food.
- If the program is provided by a person under 18, or by the spouse of the tax-file.
CATC Receipt Should Include Following:
- providing organization’s name and address
- name of the eligible program
- amount received, date received, and amount eligible for the CATC
- full name of the payer
- full name of the child, and the child’s year of birth, and
- authorized signature (not necessary for electronically generated receipts)
For more information: check the appropriate Canada Revenue Agency (CRA) page.
More on the Children’s Arts Tax Credit (CATC) from CRA
