The Canada Revenue Agency considers you a working artist if you meet certain criteria. These include if you composed a dramatical, musical, or literary work, or performed as an actor, dancer, singer or musician in a musical or dramatical production. You are also eligible if you performed an artistic activity as a member of a professional artists association, or if you created a painting, print, etching, drawing, sculpture or similar work. It’s important to note the painting, print, etching, drawing or sculpture must be your original work. Additionally, the professional artists association must have been approved by the Minister of Canadian Heritage.
You can claim employment expenses related to your income earned as an artist. You can claim an amount that is limited to the lesser of:
- your total expenses paid relating to your artistic work, or
- the lesser of 20% of your employment income or $1,000
- minus musical instrument expenses, interest, and CCA on your motor vehicle
If your expenses are higher than the allowable amount, you can carry forward the expenses to future years. You don’t need a signed T2200 Declaration of Condition of Employment to claim artists’ expenses such as instruments repairs, insurance costs, etc. However, you will need a signed T2200 if you want to claim other employment expenses under a salaried employee such as legal fees, travel costs, etc.
You don’t need to file the T2200 with your income tax return. Keep the form for reference in case CRA requests a copy. You will need to file the T777 Statement of Employment Expenses with your tax return to calculate the allowable expenses against your income. If you paid GST/HST on any of the expenses, you can claim a GST/HST Rebate.
TurboTax software offers an easy step-by-step guide to help you file the T777 form and related forms to get the maximum deductions you are eligible for. Consider TurboTax Live Assist & Review if you need further guidance, and get unlimited help and advice as you do your taxes, plus a final review before you file. Or, choose TurboTax Live Full Service* and have one of our tax experts do your return from start to finish.
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