Canada Training Credit

February 12, 2021 | Mike Biette

Simplified Summary:

A brand new tax credit for eligible tuition and fees paid for courses taken in 2020 and future tax years. You can start building your credit in 2019 at a rate of $250 per year and can use those credits on your 2020 (or future) tax return against a portion of qualified tuition and course fees paid.

Detailed Summary:

Effective Jan 1, 2019

The Canada Training Credit is a non-taxable credit which is accumulated at a rate of $250 per year, starting in 2019, with a lifetime maximum accumulation of $5,000. The taxpayers available Canada Learning Credit will be shown on their Notice of Assessment and can start being used in 2020 and subsequent taxation years.

In order to earn a credit for the current year the taxpayer must meet the following criteria:

  • They must file a tax return for the year.
  • They must be between the ages of 25 and 65 at the end of the year.
  • They must earn at least $10,000 from employment, self-employment, or taxable scholarships.
  • Their taxable income must be no more than the upper limit of the third tax bracket ($147,667 in 2019 and $150,473 in 2020)

In the year that eligible tuition fees are paid, the taxpayer may claim the lesser of:

  • Their available Canada Training Credit, and
  • 50% of the eligible tuition fees paid.

The amount claimed will either reduce taxes owing (if any) or will be refunded to the individual if no taxes are owing.

In addition, the Tuition Amount (non-refundable credit) for the year will be reduced by the Canada Training Credit claimed in respect of that tuition.

A tax professional at TaxTeam can discuss this and other credits and deductions that may affect your taxes. Call 306-694-4829 or visit www.taxteam.ca