Canada Training Credit

a New Education Tax Credit

Canada Training Credit Can Help with Training and Education Costs

The Canada Training Credit is a new refundable tax credit to help Canadians with the cost of tuition fees. The credit accumulates at a rate of $250 per year, up to a lifetime training amount limit of $5,000. The credit will be the lesser of the individual’s Canada training credit limit for the taxation year, and half of the eligible tuition and fees paid to an eligible educational institution in respect of the year.

What is the Canada Training Credit

Starting in 2019, an eligible individual (see below) will be able to accumulate $250 in each year up to a maximum of $5,000 in a lifetime. The Canada training credit limit for a year is equal to their Canada training credit limit for the previous year minus any Canada training credit claimed in the previous year plus the annual accumulation of $250 in the previous year.

To be eligible you must:

  • be an individual who is at least 25 years old and less than 65 years old at the end of the year file a tax return for the year.
  • be resident in Canada throughout the year.
  • have a total of $10,000 or more of income from:
  1. maternity and parental benefits, and
  2. working income (income from an office or employment, business income, the taxable part of scholarship income and research grants, the tax-exempt part of earnings of status Indians and emergency service volunteers, and income under the Wage Earner Protection Program Act).
  • have individual net income for the year that does not exceed the top of the third tax bracket in that year ($147,667 in 2019)

What counts as an eligible educational institution?

An eligible educational institution is either:

  • a Canadian university, college, or other educational institution offering courses at a post-secondary level
  • a Canadian institution providing occupational skills courses and certified by the minister of employment and social development (Infofit is on this list)
  • Infofit is an eligible institution

How to Claim:

To claim the Canada training credit in a given tax year you must meet the eligibility criteria listed above.

The amount that can be claimed each year will be the lesser of 50% of your eligible tuition for that year and your Canada training credit limit.

For example, if you have a credit limit of $250 accumulated and $6,000 of eligible tuition fees for the year, you will claim $250 because it’s the lesser amount between $250 (your accumulated Canada training credit limit) and $3,000 (50% of your $6,000 tuition fees).

Where can I find out what my Canada training credit limit is?

Your accumulated Canada training credit will be shown on your previous year’s notice of assessment as well as in your CRA My Account.

How do I claim the Canada Training Credit?

The CTC is claimed on line 45350 on your tax return. Follow the instructions in your certified tax software or fill out Schedule 11 if you’re filing a paper return.

Can I claim both the Canada training credit and the tuition tax credit? 

Yes, you can claim both the Canada Training Credit and the tuition tax credit in the same year. However, your tuition tax credit will be reduced by the amount of the CTC that you claim in that year, so you won’t get the full value of both credits.