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Canada Training Credit
Canadian Tax and
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Effective January 1, 2019, the Canada Training Amount started accumulating at
the rate of $250 per year (not indexed), based on the following criteria:
Canadian resident taxpayers
aged 25 to under 65
who were resident in Canada throughout the year, and
have filed a tax return for that year
Working income (including maternity and parental benefits) must be at
least $10,000 in the preceding year, indexed after 2020.
With net income NOT exceeding the top threshold of the 3rd tax bracket for
the preceding year ($150,473 for 2020, $151,978 for 2021, $155,625 for 2022).
Lifetime limit of the
training amount is $5,000 (not indexed).
Any unused balance will expire at the end of
the year in which the taxpayer turns 65, or when the taxpayer dies.
Canada Training Credit Earnings Limits
The above table means that to accumulate the annual training amount limit of
$250 for the 2020 taxation year, that can be used in 2021, the following conditions must be met:
taxpayer aged 25 to less than 65 at December 31, 2021
taxpayer was a Canadian resident throughout 2020
have total working income of $10,100 or more in 2020 (revised to agree
with CRA information)
have individual net income for 2020 that did not exceed $150,473
Claiming the CTC on the Tax Return
The refundable training credit can be claimed on line 45350 of the tax return
by completing Schedule 11, for a year in which the taxpayer incurs eligible tuition fees (including
ancillary fees and charges and examination fees), which would be reported on the
taxpayer's T2202 tax slip.
The claim is the lesser of
the training credit accumulated to the end of the previous taxation year,
50% of the eligible tuition and fees paid, and
$5,000 less training credits claimed in previous years.
Eligible tuition fees will be the
same as under the existing rules for the Tuition
Tax Credit, except that educational institutions outside of Canada will not
be eligible. Eligible educational institutions include:
a university, college or other educational institution providing courses
at a post-secondary school level, or
certified by the Minister of Employment and Social Development to be an
educational institution providing courses designed for university credit,
that furnish a person with skills for, or improve a person's skills in, an
If the amount of the training credit allowable exceeds tax
otherwise payable, the balance will be refunded.
Eligible tuition fees for the Tuition Tax Credit will be
reduced by the amount of the training tax credit deducted.
The first taxation year in which a Canada Training Credit can
be claimed was 2020, based on tuition fees incurred in 2020 and the
accumulated training credit for 2019 ($250).
Canada Training Credit (CTC) Example
Duncan has accumulated training amounts for 2019 and 2020, so his CTC limit
at the end of 2020, for a 2021 claim, is $500 (2 yrs x $250).
He has eligible tuition fees in 2021 of $7,000.
His claim amount for 2021 is $500, being the lesser of:
$7,000 x 50% = $3,500 and
his CTC limit of $500 (previous year balance of CTC)
If Duncan's tax payable for 2021 is zero prior to this credit, he will get a
refund of $500, because this is a refundable tax credit.
Tuition amount that can be claimed for 2021 is $7,000 - $500 = $6,500.
Provincial Training Credits
Ontario Refundable Jobs
Training Tax Credit
initially planned for 2021 only (Ontario
Taxation Act, 2007, s. 103.0.4)
they are resident in Ontario on Dec 31st of the taxation year, and
Training Credit limit of the individual for the year is greater than
they are aged 26 to 65 years old at the end of the taxation year, and
meet the other requirements of the Canada Training Credit.
eligible expenses are based on expenses that may be claimed in respect
of the federal tuition
tax credit (ITA s. 118.5(1)(a) and (d), but only for costs paid to
an educational institution in Canada, and including examination fees to
obtain a professional status, and licensing fees to be certified as a
credit is the lesser of $2,000 and 50% of the eligible expenses.
not limited by the amount of the taxpayer's Canada Training Credit
balance, but the balance must be greater than zero.
will be claimed on the 2021 tax return.
Ontario Jobs Training Tax Credit Example
Taxation Act, 2007 s. 103.0.4
If Duncan, from the Canada Training Credit example above, is a resident of
Ontario, then his Ontario refundable jobs training tax credit for 2021 would be:
the lesser of $2,000 or 50% of eligible expenses of $2,000
50% of eligible expenses = $3,500
Duncan will have an Ontario refundable tax credit of $2,000.