The Canada training credit is a new refundable credit available for eligible tuition and other fees paid for courses taken in 2019 and subsequent taxation years.
Accumulating credit toward your limit
Each year starting in 2019, if you meet the eligibility requirements, you will accumulate $250 towards your Canada training credit limit to a maximum of $5,000. The eligibility requirements are that you:
- are at least 26 years old and less than 66 years old in the tax year;
- file a tax return for the year;
- be resident in Canada throughout the year;
- have a total of $10,342* or more of income from:
- maternity and parental benefits, and
- working income (income from an office or employment, business income, the taxable part of scholarship income and research grants, the tax-exempt part of earnings of status Indians and emergency service volunteers, and income under the Wage Earner Protection Program Act).
- have individual net income for the year that does not exceed the top of the third tax bracket in that year ($155,625 in 2022)*.
*Earning and income thresholds will be subject to annual indexation.
Claiming the credit
To claim the Canada training credit in a given tax year there are also conditions to be met. They are that:
- you file an income tax and benefit return for the year;
- your Canada training credit limit for the year is greater than zero. If you’re under 26 or over 65 you won’t be able to claim the credit because your credit limit will be zero;
- you are resident in Canada throughout the year;
- tuition or fees are paid to an eligible educational institution in respect of the year; and
- the tuition and fees are otherwise eligible for the existing tuition tax credit.
The amount that can be claimed in a given year will be the lesser of 50% of your eligible tuition for that year and your Canada training credit limit.
For example, if you have a credit limit of $250 accumulated and $6,000 of eligible tuition fees for the year, you will claim $250 because it’s the lesser amount between $250 (your accumulated Canada training credit limit) and $3,000 (50% of your $6,000 tuition fees).
Entering the credit
To claim this credit:
- Type “training” in the search box and add the Tuition and Education Amount section.
- Fill in your Canada training credit limit for 2023. Your accumulated Canada training credit will be shown on your previous year’s notice of assessment as well as in your CRA My Account.
That’s it! We’ll automatically calculate your Canada training credit amount for you. You can review the calculation on the federal and provincial Schedule 11 in the Documents section.
Where can I find out what my Canada training credit limit is?
Your accumulated Canada training credit will be shown on your previous year’s notice of assessment as well as in your CRA My Account.
Can I still claim the existing tuition tax credit?
Yes, but your tuition amount will be reduced by the amount of the Canada training credit you’ve claimed. For example, if your tuition amount is $6,000 and you claim $250 for the Canada training credit, the amount of tuition used in the calculation of the tuition tax credit will be $5,750 (plus any unused tuition credits, if applicable).
To learn more about the Canada training credit, please visit the CRA’s website.