What are Canada Training Credits, and how do I enter them into TurboTax?

by TurboTax• Updated 9 months ago

The Canada Training Credit (CTC) is a refundable federal tax credit initiative that started in 2020 to help with training and tuition fees. To be eligible for the CTC, you must be a Canadian resident no younger than 26 and no older than 65. Qualifying income is between $10,000 and $151, 978 (the upper limit is indexed annually), provided you have a Training Credit Limit from the prior year’s Notice of Assessment. For more information, refer to the CRA website.

Eligible individuals can accumulate credit amounts of $250 each year to a maximum of $5,000 in a lifetime. Those wishing to use the CTC must attend and pay tuition to an eligible institution, including:

University, college, or another Canadian facility offering post-secondary courses.
Canadian schools offering occupational skill courses certified by the Ministry of Employment and Social Development.

To enter your tax credits into TurboTax, choose your software edition from the list and follow the steps.

Enter your credit in TurboTax Online

Go to Your Student Profile by selecting Find from the menu.
Enter student in the search bar, then choose Students from the list of results and select Go.
Select Tuition fees on a receipt, T2202, or TL11 and complete the tuition section of your return.
If eligible, you’ll be asked to enter the Canada Training Limit amount from your previous year’s Notice of Assessment (NOA). You'll then be directed to a screen showing your available credit amount and whether it can be claimed.
Once completed, you’ll see a Student Summary of the claim amount on your return.

Enter your credit in TurboTax Download

Follow these steps while in Easy Step mode. If you want to claim the credit in Forms mode, use Schedule 11.

Go to Your student profile by selecting Find from the menu.
Enter deductions and credits in the search bar, then choose Deductions and credits and select Go.
From the side menu, select Students.
Select Tuition fees on receipt, T2202, or TL11, then Continue.
If your tuition isn't reported on a T2202 slip, enter the tuition fees in the applicable box. If your tuition is reported on a T2202 slip, select Enter T2202 and complete the tuition section of your return to find out if you're eligible.
If eligible, enter the Canada Training Limit amount from your previous year’s Notice of Assessment (NOA). You'll then be directed to a screen showing your available credit amount and whether it can be claimed.
Once completed, you’ll see a Student summary of the claim amount on your return.