Demonstrating to potential employers that you have the required experience and skills is crucial to career success and job prospects, regardless of whether you’ve just graduated, are starting a new career, or pursuing a promotion.
Learn how the Canada Training Credit can help you with the costs of training and education courses.
What is the Canada Training Credit?
The Canada Training Credit (CTC) is a new refundable tax credit that can be used toward eligible training fees. This money can be used to fund eligible tuition fees and the costs of other courses of study.
What are the Canada Training Credit eligibility criteria?
You are eligible to claim the Canada Training Credit if you meet all of the following conditions for the taxation year:
- You’re a Canadian resident aged 26-66 years old.
- You file a tax return.
- You have a Canada Training Credit limit higher than zero on your latest notice of assessment or reassessment.
- You paid tuition or other fees to an eligible educational institution for a course or to an organization for an occupational, trade or professional exam.
- The tuition and fees qualify for the existing tuition tax credit.
Canada Training Credit eligible institutions
To qualify for the Canada Training Credit, an eligible Canadian educational institution is one of the following:
- A university, college or other educational institution offering courses at a post-secondary level.
- An institution that provides occupational skills courses certified by the minister of employment and social development.
What is my Canada Training Credit limit?
Every time you file a tax return, the CRA increases your Canada Training Credit limit by $250, up to a lifetime training amount limit of $5,000.
This accumulated Canada Training Credit limit started in 2019. It stops accumulating when you reach the lifetime limit or turn 65 years old, whichever comes first.
Even if you claim the CTC in a given year, you can still accumulate $250 the following year.
The CTC reduces your income tax bill as it is a refundable tax credit that you can deduct from your tax return. If the credit exceeds the amount of tax you owe, you may receive a refund for the difference.
How to calculate the Canada Training Credit amount
Your Canada Training Credit amount is whichever amount is less:
- Your CTC limit for the tax year.
- 50% of the eligible tuition and other fees you paid in the year.
You can calculate your CTC by following the steps below:
- Find out your CTC limit for the previous taxation year.
- Add the annual accumulation of $250 if you were eligible.
- Subtract the CTC you claimed in the previous year.
The result will be the amount of CTC you are eligible to claim in the current year.
Suppose you pay $2,500 in eligible tuition fees for a course at an eligible educational institution. You have met the CTC eligibility requirements for 2019 to 2022 and are eligible for 2023, so your CTC limit is $1,000.
You can claim whichever amount is less; your CTC limit ($1,000) or 50% of your eligible tuition fees paid ($1,250). In the above scenario, you can claim $1,000 as a refundable credit for the 2023 tax year.
Your unused balance is now zero, but if you meet the conditions, you’ll accumulate another $250 every year up to the lifetime maximum of $5,000 or until you turn 65.
Where to find your Canada Training Credit
How do I claim the Canada Training Credit?
You can claim the Canada Training Credit when you file your income tax and benefit return. This credit is claimed on line 45350 of your return and can reduce the tax you owe.
Can I still claim the existing tuition tax credit if I claim the CTC?
Yes, you can still claim the existing tuition tax credit even if you claim the CTC, but your tuition tax credit will be reduced by the amount you claim.
The Canada Training Credit was introduced in 2019 as a new refundable credit to support lifelong learning and help you upgrade your skills in a rapidly evolving job market.
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