A few things you probably don't know about the new Children's Arts Tax Credit

It's tax season again, and if you have children, you're probably looking forward to claiming the new Children's Arts Tax Credit for the first time.  Although you probably know it covers arts programs, you might not know that it covers academic tutoring, programs that help develop interpersonal skills, and programs that help children develop and use intellectual skills.  That credit will apply to both the tutoring and social skills programs offered by our sister organization, Turning Tides Community Outreach! 

Here is an explanation of the credit program by Wade Brummet, parent and Past-Chair of the Equal Education Association of Nova Scotia.

Rhonda & the Bridgeway team

By Wade Brummet

Equal Education Association of Nova Scotia

New for the 2011 tax year is the Children's Arts Tax Credit.  Up to $500 is eligible to be deducted from either (not both) parents return for children under 16.  For children holding a disability tax certificate (form 2201), they are eligible for the credit until age 18, and qualify for an additional credit of $500 if at least $100 in eligible expenses has been paid.  For example, if you claimed $150, the actual credit amount will be $650. 

The new tax credit has been fairly well-publicized, but what might not be as well known is that money paid for programs that support the intellectual or social development of kids, along with academic tutoring, can also be claimed.  Here is the full list of activities that are eligible:

·         contributes to the development of creative skills or expertise in artistic or cultural activities;
·         provides a substantial focus on wilderness and the natural environment;
·         helps children develop and use particular intellectual skills;
·         includes structured interaction among children where supervisors teach or help children develop interpersonal skills; or
·         provides enrichment or tutoring in academic subjects.

To qualify for this amount, a program must meet the requirements listed under the section called "Prescribed program" at Line 365.  You can also find more information on the Canada Revenue Agency website at http://www.cra-arc.gc.ca/gncy/bdgt/2011/qa01-eng.html.

Note: An activity that develops creative skills or expertise is only eligible if it is intended to improve a child's dexterity or co-ordination, or helps in acquiring and applying knowledge through artistic or cultural activities such as literary arts, visual arts, performing arts, music, media, languages, customs, and heritage.

 
The Equal Education Association of Nova Scotia is a non-profit association formed to advocate educational rights on behalf of all children with learning disabilities in Nova Scotia.  Contact EEANS for more information at info@eeans.ca or visit their website -  www.eeans.ca.