35% of seniors are interested in continuing their education to earn degrees — are you one of them?

Even if you're not a senior yet or simply want to take a few courses, further education is becoming increasingly attractive in an ever-changing economy.

And if it's out of budget, don't worry — the Government of Canada has you covered. The Canada Training Credit is a tax credit you'll want to know about. We'll explain:

• What it is
• Who qualifies, and what kind of tuition is eligible
• Maximum amounts you can claim
• How to claim it

And other answers to questions you have. Let's go!

By the way —  need to drum up some cash for further education? If you're a homeowner, you'll want to hear about Lotly. We work with a network of 50+ lenders to find fair, stable equity loans that turn equity into cash that can pay your tuition. Book a free consultation today to learn more.

What is the Canada Training Credit (CTC)?

The Canada Training Credit, or CTC for short, is a refundable tax credit designed to help with the cost of job training. The Canadian government introduced it in 2019 as part of its commitment to helping Canadians gain new skills and remain competitive in the workforce.

Key details you should know about the CTC:

• Who hands it out? The Canada Revenue Agency, or CRA, is the issuing authority behind the CTC. They'll distribute it as part of your tax return.
• What is it? A refundable tax credit. That means that if you have no federal tax owing, you will still receive the full amount of the credit as a refund.
• How much can I claim? The CTC is calculated based on your eligible tuition and fees, up to a maximum of $250 per year.
• When will I receive it? The CTC is available after you file your tax return. So, if you incurred eligible training expenses during 2024, you can claim them on your 2024 tax return, which is due by April 30, 2025.

Eligibility criteria for claiming the Canada Training Credit

To be eligible for the CTC, there are a few criteria that you must meet: 

• You must be at least 26 and under 66 years old by the end of the tax year.
• You must have filed a tax return for the previous tax year. If you haven't, file it before claiming your CTC.
• Your CTC limit is greater than 0.
• You were a resident of Canada for the past year.

As well, the tuition you're claiming the credit for needs to meet some requirements:

• Tuition and fees must have been paid to an eligible educational institution for courses taken in the year you're claiming the credit for — that means you can't claim the credit for education taken before the past tax year.
• The tuition and fees are ineligible for the Tuition Tax Credit.

One last caveat — what is an eligible educational institution?

• A university, college, or other educational institution in Canada providing courses at a post-secondary level OR
• An institution (certified by the minister of employment and social development) offering occupational skills courses.

Maximum amounts you can claim under the Canada Training Credit

The claimable amount for the CTC will be the lesser of two amounts:

• Your Canada training credit limit for the current tax year
• 50% of the tuition paid

What is the Canada Training Credit limit? Here's how it's calculated:

The Canada Training Credit limit amount (CTCL) is calculated based on the eligible tuition and fees you paid during the year, up to a maximum of $250 for the first year. This means that if you incurred more than $250 in eligible expenses, you can still only claim up to $250 for the year. However:

• Your limit will increase by $250 annually if you meet the criteria (which we'll discuss soon).
• Even if you claimed your CTC for the current year, you can still accumulate an additional $250 in claimable amounts for the next tax year.
• The limit will continue to accumulate for a maximum of $5,000 in your lifetime.

In other words, the amount you can claim will grow by $250 yearly.

Note: The CTC limit applies to each individual, not household. So, if both you and your spouse/partner have eligible training expenses, each of you can claim up to $250 for a total of $500 per year. Still need cash for upcoming tuition costs? You might benefit from the Working Canadians Rebate.

How to claim the CTC on your tax returns

You'll claim the CTC on line 45350 of your income tax and benefit return. The process is quite simple:

• Filing online? If you're filing with certified tax software, simply follow the instructions provided.
• Paper filing? You'll need to fill out Schedule 11, the Federal Tuition, Education and Textbook Amounts, and Canada Training Credit while filing your income taxes. You can find the forms here.

If you're still confused, don't worry! You can consult a certified tax professional or contact the Canada Revenue Agency for assistance.

Can you claim both the Canada Training Credit and the tuition tax credit?

Short answer: probably not.

As part of the eligibility requirements for the CTC,  the claimable amounts must be ineligible for the tuition tax credit. What are those requirements?

• The course was taken at a post-secondary educational institution.
• The institution was certified by the Minister of Employment and Social Development Canada.
• You're older than 16, developing or improving skills in an occupation.
• Your fees were greater than $100.

Generally, applicable fees include:

• Application and admission fees
• Exemption and confirmation fees
• Academic fees, and charges for degrees, diplomas, and certificates
• Examination fees

And more.

The eligibility criteria for the tuition tax credit are relatively broad, so it's unlikely you have a tuition fee that meets every requirement of the CTC.

Benefits and limitations of the Canada Training Credit program

Benefits:

• The CTC is designed to help individuals offset the cost of training and development.
• It encourages individuals to continue learning and upgrading their skills throughout their careers.
• The CTC limit accumulates over time, allowing individuals to claim larger amounts in future years.

Limitations:

• The program only covers eligible tuition fees for courses taken after 2019. Fees incurred before this date do not qualify for the CTC.
• Claimants must meet all eligibility requirements and provide proof of enrollment in an eligible course or program.
• The maximum amount you can eventually claim is $5,000, which may not cover all tuition fees for some individuals pursuing higher education or professional development.

Overall, while the Canada Training Credit can provide financial assistance for those seeking further education and training, it has limitations and may not fully cover the costs associated with pursuing these opportunities.

Let your home equity power your education with Lotly

Let's recap what we've learned:

• The Canada Training Credit (CTC) offers financial support for skill development. Introduced in 2019, it’s a refundable tax credit that allows individuals aged 26–65 to claim up to $250 annually for eligible training expenses, accumulating to a lifetime maximum of $5,000.
• Eligibility for the CTC hinges on meeting specific criteria. Claimants must be Canadian residents, have filed a tax return, and enroll in courses at an approved educational institution. Eligible expenses exclude those claimable under the Tuition Tax Credit.
• Claiming the CTC is straightforward but subject to limitations. You can claim it on line 45350 of your tax return, and the amount is limited to the lesser of 50% of tuition paid or your annual credit limit.

Financing your education can feel daunting, but it doesn't have to be! 

With Lotly, you can use the equity in your home to fund your education and training. We work with over 50 lenders across Canada to find loan options customized to your financial situations and goals—with much better rates than unsecured personal loans. Contact us today to book a free consultation!

Frequently Asked Questions

What is the Canada training credit limit for TurboTax?

TurboTax is simply a tax filing software with no bearing on your CTCL. You have a limit of 50% of tuition paid or your annual credit limit for claiming the Canada Training Credit. This limit may vary depending on your individual tax situation, so you should discuss it with an accountant or financial advisor.

Can you claim training courses on tax Canada?

Yes, eligible training courses can be claimed on your taxes in Canada through the Canada Training Credit. However, tuition expenses claimed under other tax credits (such as the Tuition Tax Credit) cannot be claimed under the CTC. You should review and understand the eligibility criteria for each tax credit before making a claim.

Do you need T2202 to claim Canada training credit?

No, you'll need a T2202 to claim the tuition tax credit but not the Canada training credit. Keep all receipts and documentation for your training courses as proof of payment and eligibility. If your taxes are audited, you may be asked to provide this information.

It may sound like a slog, but if you accurately claim all eligible expenses, including training courses, on your tax return to reduce your taxable income — you’ll potentially receive a larger tax refund.

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