As a Canadian taxpayer, it’s important to keep up with the latest tax credits and deductions available. One such credit is the Canada Training Credit (CTC). In this blog post, we’ll discuss everything you need to know about the CTC, including eligibility, how to apply, and how it can benefit you.

The Canada Training Credit is a new, refundable tax credit designed to help Canadian workers cover the cost of job training and education. It was introduced in the 2019 federal budget and is set to become available in 2020.

To be eligible for the Canada Training Credit, you must meet the following criteria:

  • Be between the ages of 25 and 65
  • Have earnings of at least $10,000 in the tax year
  • Have a net income of $147,667 or less in the tax year
  • Have filed a tax return for the tax year
  • Have accumulated $10,000 or less in eligible tuition and other fees for courses that start in the tax year or in the following tax year
  • Not have withdrawn more than $10,000 from your registered retirement savings plan (RRSP) or pooled registered pension plan (PRPP) under the Home Buyers’ Plan or the Lifelong Learning Plan in the tax year or the preceding two tax years

If you meet the eligibility criteria, you can accumulate $250 per year, up to a lifetime maximum of $5,000, towards the Canada Training Credit. The credit is equal to 50% of eligible tuition and other fees paid, up to a maximum of $250 per year.

To apply for the Canada Training Credit, you must file your tax return for the tax year. The Canada Revenue Agency (CRA) will calculate your Canada Training Credit and include it in your Notice of Assessment.

The Canada Training Credit can be beneficial for workers who want to improve their skills and advance their careers. By providing financial assistance for training and education, the CTC can help workers stay competitive in today’s job market and adapt to changing industry demands.

In conclusion, the Canada Training Credit is a valuable new tax credit available to eligible Canadian workers. By accumulating up to $5,000 towards eligible tuition and other fees, you can receive a refundable tax credit of up to $250 per year. So if you’re looking to invest in your future and advance your career, be sure to take advantage of the Canada Training Credit when it becomes available in 2020.