The Canadian government recently introduced the Canadian Children’s Arts Tax Credit (CATC), a new, non-refundable tax credit based on expenses paid for the cost of registration of children in an eligible program of artistic, cultural, recreational or developmental activity.
Here’s a few things you should know about the CATC, and whether you’re eligible:
The program applies to children under 16 at the beginning of the year the expenses are paid and children under 18 eligible for the disability tax credit. Also, if at least $100 in eligible expenses has been paid for by a child eligible for the disability tax credit, an additional amount of $500 can be claimed for that child.
In order to be eligible for the CATC, your children’s programs must contribute to the development of creative skills or expertise in artistic or cultural activities. Children must be registered for eight consecutive weeks, or five consecutive days when over 50 per cent of the time is scheduled for eligible activities. Programs that are part of school curriculums are ineligible.
Eligible activities include those involving a child’s ability to improve dexterity or coordination, or acquire and apply knowledge in the pursuit of artistic or cultural activity. Artistic and cultural activities include literary arts, visual arts, performing arts, music, media, languages, customs and heritage.
For more information on the CATC, please visit the Canadian Revenue Agency website.