Children's Arts and Cultural Activity Tax Credit
Winnipeg's River Heights School of Music gives parents 2 income tax receipts for their Music Lessons.
One at the end of the calendar year and one at the end of the school year.
Starting in 2011, a new Manitoba tax credit will provide parents of children under 16 with a 10.8% non-refundable income tax credit (worth up to $54 in income tax savings) on up to $500 of eligible expenses for children's participation in eligible non-fitness activities. Included are organized and supervised activities outside a school's regular programs: in performing, music, graphic, and language arts; tutoring in academic subjects; leadership and personal effectiveness training; environmental stewardship; crafts; and safety. Children's organizations such as Girl Guides, Scouts, 4-H and Cadets are also eligible. For a child with a disability under age 18, on whom at least $100 is spent on eligible activities, the family qualifies for an additional $54 in income tax savings.
The federal government has recently announced a Children’s Arts Tax Credit. It is the Province’s intention to align Manitoba’s Children’s Arts and Cultural Activity Tax Credit with the federal credit. Both allow parents to claim non-refundable tax credits based on an amount of up to $500 in eligible expenses per child paid in a year for registration or membership of a child in an eligible program of artistic, cultural, recreational or developmental activities. Music lessons are a great example of these types of activities.
Note that for the Manitoba tax credit, only paid activities are eligible and this does not include costs for the purchase or rental of equipment for exclusive personal use (e.g. musical instruments), accommodation, travel, food, or beverages. Activities must be part of a regular series of planned and supervised activities that is safe and suitable for children and is likely to contribute to the personal development of a child. Camps and memberships may also qualify.
For more information and a list of applicable activities, visit: http://www.gov.mb.ca/finance/pcredits.html#cultural