How To Claim The Canada Training Credit

How To Claim The Canada Training Credit

Written by Chrissy Kapralos
Fact-checked by Caitlin Wood
Last Updated January 24, 2022

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 introduced the Canada Training Credit. 

What Is The Canada Training Credit? 

The Canada Training Credit is a new, refundable tax credit meant to offer financial relief for tuition and course fees incurred in 2020 and following tax years. 

Eligible taxpayers would have accumulated $250 per year or up to $5,000 in their lifetime. The limit each year for the Canada Training Limit is either half of the taxpayer’s eligible tuition and course fees paid that year, or the taxpayer’s Canada training credit limit for the taxation year (the lesser of the two). 

How Does The Canada Training Credit Work?

Eligible applicants can receive a credit of $250 every year towards their tuition fees starting in 2019, and can claim the credit the year they pay tuition. Here’s 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 however, she would claim $1,000 instead of $1,250, as that’s the lesser of the two (half of tuition vs. Canada training benefit limit). 

Who’s Eligible For The Canada Training Credit? 

Applicants must meet the following criteria to be eligible for the Canada Training Credit. They must:

  • Have filed a income tax return for the previous year 
  • Be between 26 and 65 years of age 
  • Have resided in Canada during the previous year
  • Have earned between $10,000 and $147,667 in the previous year (limit changes each year)
  • Have paid tuition to an eligible educational institution, and those tuition fees are eligible for the tax credit.

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, and can access that through the CRA My Account portal

The educational institution you attended in the year 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. 

Canada Training Credit FAQs

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.  

Which fees and tuition are eligible under the Canada Training Credit? 

With the same eligibility requirements as the tuition tax credit, the Canada Training Credit’s eligible tuition and fees include the following:
  • Tuition fees
  • Examination fees
  • Ancillary fees such as admission fees, exemption fees, or charges for a certificate, diploma, or degree

Which educational institutions are eligible for this tax credit? 

Eligible educational institutions must be Canadian universities, colleges, or other educational institutions providing post-secondary education. Or, they must be Canadian institutions that offer occupational-skills courses that are certified by the Canadian Minister of Employment and Social Development. 

How will I know what my Canada training credit limit is?

You’ll find your Canada Training Credit limit on your annual Notice of Assessment (NOA), which you can access through the CRA’s My Account portal.

Final Thoughts

With eligible amounts nearing half of one’s tuition fees, the Canada Training Credit is an important opportunity for students to find some relief on their post-secondary education costs. 

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Chrissy is a Toronto-based communications advisor. With an English degree from the University of Toronto and editing courses under her belt from Ryerson University, she has continued her lifelong passion for writing and editing. In addition to working for Loans Canada on a variety of financial topics, Chrissy has a few years of resume writing and editing under her belt, and takes great pleasure in helping people find work that fits with their experience and passions. When she isn't working, you can find her practicing yoga, hanging out with her dog, reading up on financial and real estate news, or planning her next trip abroad.

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