CANADA TRAINING CREDIT

The Canada Training Credit (CTC) is a refundable credit that helps working Canadians pay for training. Eligible individuals accumulate a notional "training credit limit" each year, which can be used to claim part of their tuition fees. It is claimed on line 45350 using Schedule 11.

ACCUMULATING THE LIMIT

• $250 is added each year from 2019 for individuals who file a return, are resident in Canada, are aged 26 to 65 at the end of the year, have working income of at least $12,058 (2026), and have net income below the top of the third tax bracket.

• Lifetime maximum: $5,000.

• The limit expires at the end of the year the individual turns 65.

• The current limit is shown on the Notice of Assessment.

CLAIMING

• The credit equals the lesser of half of the eligible tuition fees paid for the year and the training credit limit for that year.

• Eligible fees are the same as for the tuition tax credit, supported by a T2202, and the institution must be a Canadian post-secondary school or certified occupational skills institution.

• The tuition amount for the same fees is reduced by the CTC claimed.

• The limit used is deducted and the remainder carries forward.

EXAMPLE

A 35-year-old with a $1,000 training limit pays $1,600 for a college course. The CTC is the lesser of $800 (half of $1,600) and $1,000, so $800 is refunded. The remaining $800 of fees can still be used for the 14 percent tuition credit.