Canada training credit

Sections

• Who can applyWho can apply
• How much you can getHow much you can get
• How to calculate your credit amountHow to calculate your credit amount
• How to applyHow to apply

How to calculate your credit amount

On this page

• How to calculate your credit amount
• How much you can accumulate
• Example of how credit is accumulated

How to calculate your credit amount

The following formula explains how to calculate your Canada training credit (CTC) limit:

A + B - C

where:

A is the CTC limit for the previous tax year.

B is the annual accumulation of $250 (if you satisfy all the annual accumulation conditions, if not, B will be zero).

C is the CTC claimed in the previous year.

Note
Individuals under the age of 26 or over the age of 65 at the end of a year have a CTC limit for the year of zero, and so cannot claim the CTC for tuition and fees incurred for that year.

How much you can accumulate

Beginning in 2019, you may be able to accumulate $250 in each year that you are eligible, for use in calculating your CTC for a future year, up to a maximum of $5,000.

You will stop accumulating the CTC limit when:

• Your total accumulation is $5000
• You turn 65 years old

• Example of how credit is accumulated

  In 2023, Michelle enrols in a training program and pays $1,500 in tuition fees to an eligible educational institution in Canada. Assuming Michelle is eligible to accumulate $250 in each of the years from 2019 to 2022 inclusive, her CTC limit for 2023 is $1,000.

  Further, assuming Michelle satisfies all the conditions to claim the CTC in 2023, she can claim an amount of $750 (being the lesser of 50% of eligible tuition fees paid and her CTC limit for the year), as a CTC for the 2023 tax year.

  Her unused balance for 2023 is $250 ($1,000 - $750). If Michelle satisfies all the required conditions in 2023, she will accumulate an additional $250 for 2024. Her CTC limit for 2024 will be $500 ($1,000 + $250 - $750). This amount will be indicated on Michelle's 2023 notice of assessment as her CTC limit for 2024, which she could use in 2024 or later years.

  Therefore, over her lifetime, until the end of the year that she turns 64, Michelle will be able to accumulate up to an additional $3,750 ($5,000 - $1,250) in her CTC limit.