In typical Government fashion, they rolled out this credit and explained it in a way unlike anything they have ever explained. Thats just great… right? Steve N’ Tyler dive into this credit in this weeks Wealthy Choices episode.
The Canada Training Credit is a refundable tax credit available for eligible tuition taken in 2020 or previous years. If you are between the ages of 26 and 65, you qualify for this credit. However, there is a few other stipulations as well. On your notice of assessment, you may notice you have this credit adding up at an amount of $250 per year and up to a maximum $5,000 in a lifetime. Another important note is that you can only claim this credit if you are going to school. You also have to be a resident of Canada and filing a Canadian tax return.
As a student, you may be asking yourself; “Can I claim both the Canadian Training Credit as well as my tuition tax credit in the same year?” The answer is yes. The Tuition Tax credit is a non refundable credit meaning the best it can do is lower the amount of tax you have paid. It’s not going to generate money in your hand. The Canada Training Credit is a refundable credit meaning even if you didn’t have an income, you can still receive this money.
This credit cannot be transferred to a family member. This is an interesting point to bring up simply because your tuition tax can be transferred to a parent, spouse or grandparent.
If you have any questions about the credit, our team at The Tax Force is always here to help.