Canada Training Credit Overview 

The Canada Training Credit was introduced in the 2019 Budget. This refundable tax credit pertains to Tuition and Education enrollment, and it’s crucial for medical residents and fellows to be informed about it when preparing their 2020 tax returns. Here are the key points: 

• Accumulation: Starting from 2019 and subsequent years, individuals can accumulate $250 annually, with a maximum limit of $5,000 throughout their lifetime. To be eligible to accumulate this $250 in a particular year, an individual’s income should range between $10,000 and $150,000. 

• Application: From the 2020 tax year onwards, the accumulated amount can be utilized towards training fees at recognized colleges, universities, and other institutions that offer occupational skills training. The credit amount will be the lesser of: 
• The individual’s Canada training credit limit. 
• Half of the eligible tuition and fees incurred. 
• This credited amount will either be refunded or offset against any tax due for that year. It should be claimed on line 45350 of the T1 return. 

• Age Limit: Only individuals aged between 26 and 66 can apply the accumulated credit. 

• Credit Reduction: The amount claimed as the Canada Training Credit will reduce the tuition amount that is eligible for the standard tuition credit, which is a 15% non-refundable tax credit. It’s worth noting that Ontario abolished the tuition tax credit for fees paid after September 5, 2017. 

• Example: Consider a medical resident or fellow in 2020 who has paid $1,000 towards tuition or exam fees. This could be related to University Post Graduate Medical Fees or Medical Licensing Exams from recognized institutions. If they have an accumulated Canada Training Credit balance of $250 (from 2019), they can apply this credit. The remaining $750 will be treated as regular tuition credits. 

• Locating the Credit: The Canada Training Benefit amount isn’t listed by the CRA under “Carryover amounts”. To find the available Canada Training Credit amount, one should refer to their 2019 Notice of Assessment. The information will be under the section titled “Explanation of changes and other important information”. For instance, it might state: “Your Canada training credit limit for the next year is $250.00.”