The Canada Training Credit limit is $250 per year, beginning in 2019, up to a lifetime limit of $5,000.
An eligible person’s credit limit for a given year will be their Canada Training Credit limit from the year before, minus any contributions, plus the annual limit increase of $250.
The Canada Training Credit is a refundable tax credit that is meant to help Canadians with the costs of tuition, courses and other related training fees.
To be eligible to accumulate $250 per year to your Canada Training Credit limit, you must file a tax return for that year, be a Canadian resident for that year, have at least $10,000 in earnings from work in that year (including maternity and parental benefits) and have income less than the third tax bracket for that year (about $155,000).
Am I Eligible to Claim the Canada Training Credit?
To be eligible to claim the Canada Training Credit, you must meet the following requirements:
- You have filed an income tax and benefit return for that year.
- You have a Canada Training Credit limit larger than zero.
- You are a Canadian resident in that year.
- You have paid tuition or other related fees to an eligible educational institution for that year.
- The tuition and fees are qualified for the tax credit (they must either be tuition, ancillary or examination fees.)
Keep in mind that anyone under the age of 26 and over the age of 65 at the end of a given year have a Canada Training Credit of zero for that year and won’t be eligible to claim the credit.
What Qualifies as an Eligible Educational Institution?
When it comes to the Canada Training Credit, an eligible educational institution is considered:
- A Canadian post-secondary university, college or other educational institution.
- A certified Canadian institution that offers occupational-skill courses.
Where Can I Find My Canada Training Limit?
You can find your Canada Training limit on your yearly Notice of Assessment (NOA).
The easiest way to access your NOA is on CRA’s portal called My Account.
Your 2022 NOA will specify what your credit limit is for 2023, so that if you pay any tuition or take any courses in that year, you can claim it for a potential tax refund.
How Do I Claim the CTC Credit?
You claim the CTC in your annual tax return, on line 45350.
Frequently Asked Questions
- Can I claim the Canada Training Credit and the tuition tax credit in the same year?
Yes, but your tuition tax credit will be based on the difference between your tuition and the CTC claimed. For example, if your tuition was $4,000 and you claimed $250 in CTC, your tuition tax credit will use $3,750 for its calculation.
Note that when it comes to claiming the CTC, you can only claim the lesser of 50% of eligible training fees paid in a year and your CTC limit for that same year. So, if your tuition is $1,500 and your CTC limit is $1,000, you can only claim $750 for that year (50% of eligible tuition).
- Can I transfer my CTC limit to someone else?
No, you can’t transfer your CTC limit to anyone else. However, you could potentially transfer paid, unused, eligible tuition and training fees and expenses to a spouse, common-law partner, parent or grandparent to claim for the Tuition Tax Credit.
For more information on the new CTC, check out Canada.ca.