From tuition payments and college housing to textbooks and conflicting schedules, working while attending post-secondary education can be stressful.
To alleviate some of this stress, the Canadian federal government offers the Canada Training Credit (CTC). Read on to find out how to apply, what you need to qualify, and how much you can expect to receive.
Key Takeaways
- The Canada Training Credit provides eligible applicants with up to $250 every year towards tuition fees, up to a lifetime maximum of $5,000.
- You must be between the ages of 26 and 65 and have lived in Canada during the tax year to qualify.
- All you need to do to claim the credit is file your income tax and benefit return.
What Is The Canada Training Credit?
The Canada Training Credit is a refundable tax credit meant to offer financial relief for tuition and course fees incurred over the tax year.
How Does The Canada Training Credit Work?
Eligible applicants can receive a credit of $250 every year towards their tuition fees, up to a lifetime limit of $5,000. The amount you can claim for the Canada Training Credit is the lesser of the following:
- Your Canada Training Credit Limit for the tax year; or
- Half of the eligible tuition and fees paid to a qualifying educational institution in Canada for courses taken in the year, or fees paid for occupational, professional, or trade exams taken during the year
You can claim the training credit for the year you pay tuition.
Let’s illustrate using an example:
- Sally makes the same salary of $40,000 from 2019 to 2024.
- In 2024, she takes a night course that costs her $2,000.
- When Sally files her taxes, she would have been eligible to accumulate $250 each year starting in 2019, totalling $1,250 at the end of the 2023 tax year.
- Since half her tuition cost is only $1,000, she would claim $1,000 instead of $1,250, as that’s the lesser of the two (half of the tuition vs. the Canada Training Benefit Limit).
Who’s Eligible For The Canada Training Credit?
You must meet the following criteria to be eligible for the Canada Training Credit:
- Have filed an income tax return for the previous year
- Be between 26 and 65 years of age
- Have resided in Canada during the year
- Have paid tuition to an eligible educational institution, and those tuition fees must be eligible for the tax credit.
- Your Canada Training Credit Limit for the year is more than zero
Where Do I Find My Canada Training Credit Limit?
You can find out what your accumulated Canada Training Credit is from the following:
- Your Notice of Assessment from the previous year
- Your CRA My Account
How Do I Claim The Canada Training Credit?
To claim the Canada Training Credit, you just need to complete your income tax and benefit return. You’ll be informed of your CTC limit in your annual Notice of Assessment, which you can access through the CRA My Account portal.
The educational institution you attended in the year that you claim your CTC will send you a T2202 slip, which completes Schedule 11 in your tax return. You’ll then transfer that amount to line 45350 of your T1.
| Online – Tax Software | Simply search and follow the prompts of the online tax software. For example, with Wealthsimple: Search for the Canada Training Credit in the software’s search box Add the Tuition and Education Amount section Add your credit limit for the tax year The software will automatically calculate your credit amount Review the calculation on Schedule 11 in the Documents section |
| Paper Application | Complete Schedule 11, Federal Tuition, Education, and Textbook Amounts and Canada Training Credit (for all except Quebec and non-residents) |
Can I Still Claim The Existing Tuition Tax Credit On My Income Taxes?
Yes, you can still claim the existing tuition tax credit. However, you would have to deduct the amount of the Canada training credit you’ve claimed from the tuition amount.
To illustrate, let’s say your tuition amount is $8,000, and you claim $500 for the Canada Training Credit. In this case, the tuition amount would be $7,500 ($8,000 – $500).
Final Thoughts
Given how expensive tuition and course fees tend to be, any financial help can go a long way. With eligible amounts nearing half of your tuition fees, the Canada Training Credit is a great opportunity for you to get some relief on your post-secondary education costs.
Canada Training Credit FAQs
Can I claim both the Canada Training Credit and the Tuition Tax Credit?
Which fees and tuition are eligible under the Canada Training Credit?
- Tuition fees
- Examination fees
- Ancillary fees such as admission fees, exemption fees, or charges for a certificate, diploma, or degree
