Tuesday, February 15, 2011

Are Your Child's Music Lessons Eligible for the Ontario Children's Activity Tax Credit?

Fiddling About
Image by Angela Anderson-Cobb
Ontario residents will be glad to know that for the 2010 tax year, music lessons are now one of the eligible activities that can be covered by the Ontario Children's Activity Tax Credit. This Ontario-only tax credit is similar to the Line 365 Children's Fitness Amount, a federal tax credit for sports activities, but has recently been opened up to a plethora of after-school activities for those paying tax in Ontario.

Here's how it works: you can deduct up to $500 worth of receipts per child for eligible activities. The amount of the tax credit will be 10% of the deducted amount. Thus, if you deduct $400 in piano lessons, you get a $40 tax credit and $500 spent on lessons will get you a $50 credit. The tax credit goes up to a maximum of $100 if a child is disabled.

It's not a lot, but a $50 tax credit per child for parents who have spent $500 and over for music lessons is nothing to scoff at.

You can go through the steps to see if your child's sports or after-school activities are eligible, and how much your deduction will net you in tax savings on the Ontario Ministry of Finance Children's Activity Tax Credit page. Remember to keep all your receipts if you claim this amount.

(Thanks, Melodie!)


  1. Paula Wilson4:11 PM

    Thanks for posting this!! I've passed it along to my students.

    This post is a perfect example as to why I love this blog, you speak to Canadian teachers/musicians!!


  2. I'm from the U.S. but hearing that Canada offers this opportunity to reward parents for bringing music into their child's life is quite moving!

  3. Anonymous12:39 PM

    if divorced....can each parent claim $500 or is it per child and each parent claims $250?

    1. Not sure. Check your tax professional.