CHILDREN’S ARTS TAX CREDIT (CATC) • • •
A large portion of your child’s music lesson fees may be eligible for the Children’s Art Tax Credit. See the Canada Revenue CATC webpage for important eligibility and ineligibility criteria. Some key excerpts are quoted, below.
Please note that Community Music will automatically issue statements for paid lesson fees. Statements will be emailed to you in late-January. Students who have not submitted an on-line Registration Form will not be e-mailed CATC statements. IMPORTANT NOTE: CMI statements do not include a student’s FULL NAME and YEAR OF BIRTH which the CRA requires – you will have to add this information.
It is up to you to determine if the student meets CRA’s age and other eligibility criteria. Please see CRA’s CATC webpage for more details.
FROM THE CANADA REVENUE AGENCY CATC WEBSITE:
- “What is the Children's Art Tax Credit (CATC)? For 2011 and subsequent years, the budget proposes a new non-refundable tax credit based on eligible expenses paid for the cost of registration or membership of your or your spouse's or common-law partner's child in a prescribed program of artistic, cultural, recreational or developmental activity (eligible program).”
- “… The CATC will let you claim eligible expenses of up to $500 per year for each of your children who are: Under 16 years of age at the beginning of the year in which the expenses are paid …”
- “… [Eligible activities include those which] “… contribute to the development of creative skills or expertise in artistic or cultural activities …”
- “… Creative skills or expertise involve 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 …”
- “… Eligible expenses are fees paid for the cost of registration or membership, which includes the costs of administration, instruction, and the rental of facilities or equipment …”
- It is important to note that the year in which the tax credit can be claimed is determined by the date when the fees are paid, not when the activity takes place.