CRA & Revenu Québec, Credits & Deductions, Education

Canada Training Credit

Started in 2019, this refundable credit is for Working Canadians who are in a training program to help alleviate the cost of training fees. The eligible person will receive an annual credit of up to $250 with a lifetime limit amount of $5000.

This amount will be calculated as the lesser of;

  • half of the eligible tuition and fees paid in respect of the year, and
  • your credit limit for the taxation year.

Eligibility

You can claim this credit if you fall under the following conditions;

  • You are between the ages of 25 and 64
  • Have earned income of at least $10,000 up to approximately $150,000 (includes maternity and parental leave benefits)
  • File your taxes
  • Your CTC limit for that year is greater than zero
  • You live in Canada for the year in question
  • Tuition and fees paid to an eligible educational institution for the year in question and these fees are eligible for the existing tuition tax credit.

An eligible educational institution for the purpose of calculating the Canada training credit, will be:

  • Post-secondary level university, college or other educational institution in Canada
  • A certified institution in Canada by the Ministry of Employment and Social Development providing occupational-skills

Eligible tuition and fees for the Canada training credit will be the same as under the existing rules for the tuition tax credit. In particular, eligible tuition and fees will include:

  • tuition fees
  • ancillary fees and charges (e.g., admission fees, exemption fees and charges for a certificate, diploma or degree); and
  • examination fees.

You may be able to claim both the Canada training credit and the tuition tax credit in the same year. However, in calculating your tuition tax credit, your eligible tuition and fees paid for the year will be reduced by the Canada training credit you claim in that year.

How do I find out if I am eligible for this credit?

You will be advised through your Notice of Assessment each year of what your limit will be. It will also be available through your My CRA Account portal. For 2020, your limit will be on your 2019 NOA.

How do I enter it on my tax return?

This credit will reduce your taxes owing, and if higher than your amount owing, you will receive a refund for the difference. You will receive a T2202 slip from the institute you attended, this slip will complete Schedule 11 once entered into your tax return. The amount will then transfer to line 45350 of your T1.

For more detailed information on the Canada Training Credit, please review this link from the CRA.