Parents Can Claim up to $500, Saving $75 Per Year
by Rhiannon Nachbaur of Award-Winning Fiddleheads Violin Studio
In 2011 the government created the Children's Art Tax Credit (CATC), a non-refundable tax credit to encourage the participation of children in artistic, cultural, recreation and development programs.
This is similar to the Fitness Credit introduced in 2010, promoting fitness through excercise in Canadian youth.
Music lessons are are eligible for this tax credit. Parents can claim up to $500 in eligible fees for enrolling a child under 16 at the beginning of the year in an eligible arts program. (The amount is doubled for children with disabilities under age 18.)
This amount can be applied to each child, so a family with 2 children in music can receive double the amount. Really, it's not much, but it's better than a stick in the eye!
Anyway, tax jargon aside, I am happy to issue receipts for my students who wish to claim lessons fees. I will give out receipts for the previous year in March/April after the tax year in question.
Note you must take in at least 8 weeks worth of lessons to be eligible for the credit. I am taking payments every 6 weeks for lessons, but the program is ongoing. Just know any student will have to do at least 8 weeks of lessons in order to file for the credit.
Take care and happy bean-counting,