The Canada training credit (CTC) helps with the cost of eligible training fees. It is refundable, so if the credit is more than the tax you owe, you may get the difference back. You claim it on line 45350 for tuition and other fees you paid for courses you took in the year.
Who can claim it
Generally, you can claim the CTC if all of the following are true:
- you file an income tax and benefit return for the year
- your Canada training credit limit (CTCL) for the year is more than zero
- you were a resident in Canada throughout the year
- you paid tuition or other fees to an eligible educational institution for courses you took in the year, or to certain bodies for an occupational, trade, or professional examination
- the tuition and fees are otherwise eligible for the tuition tax credit
- you were at least 26 years old and less than 66 years old at the end of the year
Your CTCL is shown on your latest notice of assessment or reassessment. Your claim cannot be more than that limit. The amount you claim reduces the limit available in future years.
An eligible educational institution for the CTC is one of two things. It may be a university, college, or other educational institution in Canada providing courses at a post-secondary level. Or it may be an institution in Canada providing occupational skills courses, certified by the Minister of Employment and Social Development. For this credit, the institution must be in Canada.
What document supports the claim
The same paper that supports the tuition tax credit. To claim tuition fees you must have received Form T2202 from your educational institution. You may instead receive an official tax receipt from the institution. Either one shows the eligible tuition fees you paid for a calendar year.
What matters is the calendar year the course was taken, not the year you paid the fees.
Eligible fees itemized on the document may include admission fees, library and laboratory charges, exemption fees, examination fees integral to a program, application fees where you go on to enrol, confirmation fees, charges for a certificate, diploma, or degree, membership or seminar fees related to the program, mandatory computer service fees, and academic fees.
If the fee was for an examination
An occupational, trade, or professional examination fee needs its own receipt. That receipt should show:
- the name of the institution
- the examination taken, by whom, and on what date
- the amount of eligible fees paid for the purposes of paragraph 118.5(1)(d) of the Income Tax Act
- certification that the examination is required to obtain a professional status recognized by federal or provincial statute, or to be licensed or certified as a tradesperson, allowing you to practise in Canada
- a statement that no part of the amount was levied for travel, parking, equipment of enduring value, or charges other than examination and ancillary fees
- the signature of an authorized officer
Where the amount goes
Schedule 11, Federal Tuition Amounts and Canada Training Credit, calculates the CTC. The same fees have to be claimed on line 32000 of that schedule. The credit it works out is entered on line 45350 of your return.
What to keep
Keep the T2202 or the official tax receipt from the institution. Where the fee was for an exam, keep the examination receipt too. Keep the notice of assessment that shows your CTCL for the year. Dossier files the certificate and the notice together, so both are at hand when you file.
Official CRA sources
- Line 45350 – Canada training credit (CTC)
- Guide P105, Students and Income Tax
- Schedule 11, Federal Tuition Amounts and Canada Training Credit
Source: Canada Revenue Agency (canada.ca). Not tax advice.