When you pay tuition, you’re not just getting an education. You’re also getting a tax credit which can help to lower your tax bill when you file your return. If you’re fortunate enough to be a student not owing any tax at all, you can still benefit from some of the tax credits available, including the Canada training credit (CTC).
Frequently Asked Questions
To claim an online course under the Canada training credit, it must be from an eligible education institution. For the purpose of calculating the Canada training credit, an eligible education institution includes:
- Post-secondary level university, college, or other educational institution
- A certified institution in Canada by the Ministry of Employment and Social Development providing occupational skills
So long as your online courses fall under one of these categories, you will be able to claim the Canada training credit.
No, but you do have the option to claim both. Eligible tuition fees for the Tuition Tax Credit will be reduced by the amount of the training tax credit deducted. For example, if your tuition amount is $5,000 and you claim $250 for the Canada training credit, the amount of tuition used in calculating your tuition tax credit will be $4,750 (plus any unused tuition credits, if applicable). 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).
You can find your Canada training credit limit on your previous year’s Notice of Assessment or through the CRA My Account portal. Your 2019 Notice of Assessment will show the Canada training limit for 2020 that can be used for eligible tuition fees and courses taken in 2020.
Additional information on available credits and proposed changes is available on Canada.ca. Taxpayers can access updated forms, policies, guidelines, questions and answers, and guidance.