Tax Implications for Artist Grants
FOR INDIVIDUAL ARTISTS
If the Applicant Name field on your grant application is that of an individual (as opposed to an organization or project name), you will be required to provide your SIN number, and The Toronto Arts Council will mail a T4A form to the address provided on your application during tax season.
The Canadian Revenue Agency considers a grant to an individual as taxable personal income, and the T4A from the Toronto Arts Council must be filed with your personal income taxes.
You can deduct all program-related expenses (except for the funds you personally earned through the project) if proof is provided during tax filing. This means you will only pay taxes on the portion of the grant that you personally earned. This proof should be in the form of receipts, invoices, bank statements, etc. It's important that you thoroughly keep track of all program-related transactions for this purpose.
FOR GROUPS/ ORGANIZATIONS
Organizations that receive ArtReach grants will not be given a tax receipt from the Toronto Arts Council.
Individuals may accept cheques on behalf of a group or organization and will not receive a T4A form for doing so, on the condition that the Applicant Name field on the application is the name of the Group/ Organization or the project.
FOR ALL GRANTEES
Regardless of whether or not you are issued a T4A form from the Toronto Arts Council, all income that you personally earn through the delivery of your funded program must be claimed as personal income when filing your taxes.
For instance, if you are paid $2,000 from your $10,000 grant to coordinate and deliver your program, the $2,000 you earned must be claimed as income.
SUPPORT AND RESOURCES
ArtReach is NOT able to offset any tax costs in relation to the receipt of this funding.
We understand that taxes can be overwhelming and confusing, so please don’t hesitate to reach out if you have any questions or need to be connected with any resources! You can also click here to see ArtReach's Resource Page on taxes for artists and non-profit organizations/ charities.