Children’s Tax Credit for Tutoring

Extra curricular activities are great for the development of a child. Piano lessons, skating lessons, dance lessons, and yes even tutoring are examples of activities that children enjoy and parents can use towards the Children’s Arts Tax Credit. The accumulation of these activities adds up and can be a little expensive for some parents. Fortunately, you can use your tuition amount at The Learning Space to help recover some costs at the end of the year.

Disclosure: We are not tax experts so we encourage you to speak with your accountant or financial advisor about the full details of the credit. We have however listed a few points gathered from the CRA Website that you may need to know about claiming it:

1. 15% off $500.

The children’s tax credit allows you to claim 15% on an amount up to $500 per child in a prescribed program of eligible activities.

2.Age Requirements.

Your child must be under 16 years old at the beginning of the year in which the eligible expenses were paid (or under 18 years of age if eligible for the disability tax credit).

3. No Double Dipping.

Both parents can claim eligible fees for the same child, as long as they do not claim the same fees and the combined amount is not more than $500.

4. Tutoring is Eligible.

According to the CRA, there are some criteria to meet in order to be eligible. One criterion that allows our services at The Learning Space to be used is the program must be supervised / suitable for children and must provide enrichment or tutoring in academic subjects.

5. Time is Money.

The program must be ongoing to qualify and must run for a minimum of eight consecutive weeks (or in the case of our academic summer camps, five consecutive days). What this means is that hiring a tutor to help your child improve her English or math skills would qualify for the credit (as long as the tutoring program lasted at least eight weeks) but a weekend math camp would not qualify.

You can read more about the Children’s Arts Tax Credit here: http://www.cra-arc.gc.ca/artscredit/