Tuition and Canada Training Credits

The following information was posted June 3, 2020.

Effective January 1, 2020, Video Tax News Inc. has been certified as a designated educational institution (Paragraph 118.5(1)(a)(ii)) by the Minister of Employment, Workforce Development and Labour. Video Tax News is certified as providing occupational-skills courses that are eligible for the tuition tax credit. As such, provided all other criteria are met to claim the Canada training credit, amounts paid for occupational-skills training through Video Tax News are also eligible for this credit. Fees paid on behalf of, or reimbursed to, the individual by their employer, and not included in the individual’s income, are not eligible.
 

What is the Canada Training Credit (CTC)?
 
The CTC is a refundable personal tax credit that reimburses up to half of eligible tuition and fees associated with work-related training. It is claimed on the personal income tax and benefit return. Eligible individuals accumulate $250 each year in a notional account for this purpose. The account balance is included on an individual’s notice of assessment and is made available through My Account and Represent a Client.
 
The credit available for a taxation year equals the lesser of:

  • half of the eligible tuition and fees paid in respect of the taxation year; and

  • the individual’s notional account balance accumulated in respect of previous years.

Tuition and other fees eligible for the CTC are generally the same as under the existing rules for tuition tax credits (see CRA Folio S1-F2-C2, Tuition Tax Credit, for example, Paragraph 2.7 and 2.9 for details). For example, the purpose of the enrolment must be to provide the individual with the skills, or to improve the individual’s skills, in an occupation. Amounts refunded through the CTC are not also eligible for the tuition tax credit. A claim for the credit requires the individual to be resident in Canada throughout the year of the claim.
 
To accumulate the $250 amount in respect of a year, an individual must:

  • file a tax return;

  • be at least 25 years old and up to 64 years old at the end of the year;
    be resident in Canada throughout the year;

  • have earnings (primarily income from employment or self-employment, but also including parental employment insurance benefits and tax-exempt earnings of status Indians and emergency service volunteers) of $10,000 or more in the year; and

  • have net income that does not exceed the third federal tax bracket.

Individuals accumulate up to a maximum amount of $5,000 over a lifetime. Any unused balance expires at the end of the year when an individual turns 65.
 
The first $250 was added to the notional account for 2019, so the credit was first available for expenses in the 2020 taxation year.

For more details, see the following:

Eligible for the CTC?

For amounts paid that are eligible for the CTC in respect of fees paid for occupational-skills training, please email info@videotax.com including your order number and full name. We will then email you a letter of certification to be used when claiming the amount on your personal tax return.