The Next Phase Of Canada’s Economic Action Plan Children’s Arts Tax Credit

Millions of Canadians enroll their children in artistic, cultural, recreational and developmental activities each and every year. These activities contribute to a child’s development and help create Canada’s next great artists. To help with the costs associated with children’s arts activities, the Next Phase of Canada’s Economic Action Plan proposes to introduce a Children’s Arts Tax Credit. The credit will be available for a wide range of activities that contribute to a child’s development and are not eligible for the Children’s Fitness Tax Credit .The Children’s Arts Tax Credit builds on the Government’s actions to help parents and their children, such as the Children’s Fitness Tax Credit, which provides tax relief for fees paid for children’s activities such as hockey, soccer, basketball, gymnastics and baseball. Close to 1.4 million individuals benefit from the Children’s Fitness Tax Credit each year.

How The Children’s Arts Tax Credit Will Work
Parents will be able to claim the 15-percent non-refundable Children’s Arts Tax Credit on up to $500 of qualifying expenses per child incurred in 2011 and future years for a child who is under age 16 at the beginning of the tax year. The age limit will be 18 for children eligible for the Disability Tax Credit, and an additional $500 amount will be provided in those instances.

To qualify for the Children’s Arts Tax Credit, a program must be:
• ongoing (either a minimum of once a week for at least eight weeks’ duration, or five consecutive days);
• supervised; and suitable for children.

For more information please visit the Government of Canada website here.

Download the Children’s Art Tax Credit FAQ