The Canada Training Credit (CTC) is a refundable tax credit designed to help Canadians with the costs of eligible post-secondary education fees. Starting in 2019, the Canada Revenue Agency (CRA) determines your eligibility for the CTC, and will increase your credit limit by $250 each year until you reach the lifetime maximum of $5,000.
You can use the CTC to claim tuition and other fees associated with courses you took during the previous year. When applied, your eligible credit amount will result in a lower amount of tax owing or, in some cases, a tax refund.
Key Takeaways
- The Canada Training Credit is a refundable tax credit offered to help Canadians pay for post-secondary education.
- Eligible Canadians will accumulate $250 each year based on taking eligible post-secondary courses taken the previous year.
- Canadians between the ages of 26 and 66 and eligible for the CTC, and the maximum amount you can claim is $5,000 over your lifetime.
What is the Canada Training Credit?
The Canada Training Credit is a refundable tax credit aimed at helping Canadians offset the cost of eligible post-secondary courses and education.
Each year, eligible Canadians accumulate $250 to apply to eligible post-secondary courses taken during the previous year. If claimed, the CRA will reduce your amount owing by the amount of your credit.
What is the CTC limit?
The CTC limit has both a yearly and a lifetime limit:
- A $250 increase per year for eligible Canadians
- Up to $5,000 per person over your lifetime
Each year if you are eligible, the CRA will increase your CTC limit by $250. If you do not use the $250 during a given year, it will be rolled over to the following year.
How much can you claim for the CTC?
In any given year, you can claim whichever amount is less between your annual Canada Training Credit limit or 50% of the previous year’s eligible tuition and fees.
As an example, let’s say in a given year you have $500 accumulated for your Canada Training Credit. During the same year, your post-secondary tuition and fees amount to $5,500. Half of this tuition amount is $2,750. Since you can only claim the lower amount, in this example you would claim $500 for your Canada Training Credit.
How do I find out how much my Canada Training Credit limit is?
You can find your CTC limit for the year in two places:
- On your notice of assessment (NOA)
- Via your My CRA Account
Who is eligible for the Canada Training Credit?
To be eligible for the CTC, you must meet all of the following criteria, set by the CRA:
- You file an income tax and benefit return for the year
- Your Canada Training Credit limit is more than $0
- You were a resident of Canada throughout the previous year
- Tuition/fees were paid to an eligible Canadian institution offering post-secondary studies during the last year
- The tuition and fees you paid are eligible for the existing Tuition Tax Credit
- You were between 26 and 66 years of age during at the end of the previous year
- You have a total net income of at least $10,000
- Your individual net income does not exceed the top third tax bracket (up to $173,205 for 2024)
Can international students claim the Canada Training Credit?
Generally, an international student can claim the CTC so long as:
- You are a working student who meets eligibility requirements
- You are a resident of Canada for tax purposes
How to claim the Canada Training Credit
To claim your Canada Tax Credit, you must do the following:
- File your federal tax and benefit return
- The amount claimed on line 45350 of your tax return will reduce your tax owing
- If filing electronically with certified tax software, follow the instructions
- If filing a paper return, complete Section 11, Federal Tuition, Education, and Textbook Amounts and Canada Training Credit in your tax package
How to use the Canada Training Credit
You can use the Canada Tax Credit to save money on eligible postsecondary courses you take within the previous tax year. The following are postsecondary courses that qualify to claim with the CTC:
- University, college, or other postsecondary institutions offering courses
- Canadian institutions offering occupational skills courses approved by the Ministry of Employment and Social Development
- Postsecondary courses passing an occupational, trade, or professional exam
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Like the Canadian Training Credit, the Tuition Tax Credit can be claimed for the following:
- Tuition fees
- Ancillary fees
- Examination fees
- Certificate, diploma, or degree exemption fees
Unlike the CTC, the Tuition Tax Credit is available to anyone who was a student during the previous year. It is also calculated differently:
- What you pay in tuition and fees is multiplied by the lowest federal tax bracket (15%)
- The resulting figure (tuition fees x 0.15) of your eligible tuition expenses are deducted from your tax-owing
- This may result in a tax refund for full-time students
FAQ
Who gets the Canada Training Credit?
To claim the CTC, you must be between 26 and 66 years old, be a Canadian resident, have filed taxes the previous year, paid tuition for an eligible postsecondary course, and have a total net income higher than $10,000.
Should I claim the Canada Training Credit?
If you are eligible, claiming the Canada Tax Credit is a good idea – it accumulates at a clip of $250 per year, and up to $5,000 over your lifetime, to be used to cover a portion of your tuition.
When did the Canada Training Credit start?
The Canada Training Credit program was started in 2019. Every year since, eligible Canadians accumulate $250, up to a lifetime limit of $5,000, to be used to help pay for eligible postsecondary education.
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