The Federal Training Tax Credit in Canada

Training Tax Credit

Training Tax Credit and How You Can Benefit

Since 2019, the Canadian federal government has implemented a refundable tax credit called the Training Tax Credit to be used on eligible tuition and fees paid for courses taken in 2020 and subsequent tax years.

This tax credit considers each individuals training credit limit for the taxation year and half of the eligible tuition and fees paid to an eligible educational institution. Continue reading to find out more details.

How Much Can You Claim?

Each individual can accumulate up to $250 per year and sums up to a maximum of $5,000 per lifetime. The credit considers the limit for the year minus any of the credit claimed in the previous year, plus the accumulation of the anual credit of $250.

Basically, the amount of the Canada Training Credit will be the lesser amount of either half of the eligible tuition and fees paid or the individual’s training credit limit for the taxation year.

Eligibility for the Canada Training Credit

Eligible Instutions:

An eligible institution is either a university, college or other educational institution that provides post-secondary courses or an institution in Canada that provides occupational-skills courses and is certified by the Minster of Employment & Social Development.

Tuition Fee Eligibility:

  • Tuition Fees
  • Ancillary Fees and Charges
    • This refers to admission fees, exemption fees and charges for a certificate, diploma or degree.
  • Examination Fees

Individual Eligibility:

To start, individuals must be at least 25 years old and less than 65 years of age by the end of the year to accumulate the 0 annually towards their Canada training limit credit and meet the following criteria.

  • Filed a tax return for the year.
  • Be a Canadian resident for the year.
  • Have a total of $10,000 or more income.
    • Allowable income includes:
      • Maternity and Parental Benefits
      • Working Income
        • This refers to income from an office or employment, business income, the taxable portion of scholarship income or research grants, the tax exempt earnings of status Indians and emergency service volunteers as well as income under the Wage Earner Protection Program Act.
  • Have an individual net income for the year that is not over the top of the third bracket of the year.

To find out more about your Canada Training Credit limit, check your Notice of Assessment or access CRA’s My Account portal. Read more on the CRA section of the Canadian government’s website here: Canada’s Training Tax Credit