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Did you pay tuition at an eligible educational institution? Then you may be able to claim the Canada Training Tax Credit (CTC) on your tax return. This refundable credit was created to help with training costs & is available to those with eligible tuition & other course fees.
If you meet the requirements, you can accumulate $250 a year up to a lifetime maximum of $5,000. You can claim the $250 CTC in the year you accumulate it. However, if there are years you do not have tuition, you can save accumulated credits & apply them in a year you have tuition. Unfortunately, when you turn 65, any unused balance expires.
To can claim the CTC you must be between the ages of 25 & 64 in the claim year. In addition, you must meet the following conditions:
– you file an income tax & benefit return for the year
– your notice of assessment shows a Canada Training Credit limit (CTCL)
– you are resident in Canada throughout the year
– you paid eligible tuition fees to an eligible educational institution during the year
– you have at least $10,342 of working income (including maternity & parental benefits) &
– your net income for the year is not greater than $151,978
NOTE: the income amounts are indexed & may change each year.
Claiming the CTC
If you have a CTC, you can claim it. However, the Canada Revenue Agency (CRA) will reduce your tuition amount by the credit you have. For example, if your tuition is $5,000 & you claim $250 for the CTC, the CRA will use $4,750 as your tuition. If you have a CTC & cannot use it, you cannot transfer it to anyone. However, you can carry forward or transfer any eligible tuition fees to a spouse/common-law partner or dependent for the Tuition Tax Credit
For detailed information on the Canada Training Tax Credit Contact us & talk to one of our tax specialists!