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Returning Member
posted Apr 28, 2023 9:35:25 AM

Canada Training Credit - personal or business deduction?

I enrolled in a mentorship/skills training in 2022 for a new-to-me occupation that I can eventually start up as my own small at-home business.  I am still going through the training modules and have yet to set up a business.  Can the cost of this certification be deducted on my 2022 personal tax return by using the Canada Training Credit?   I have another "side hustle" so am identifying as self employed on my return.  How can I claim this expense, if I can?

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1 Replies
Level 3
May 1, 2023 10:44:28 AM

Hi @PChanda1, per CRA article: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p105/p105-students-income-tax.html#eligible 

You can claim the CTC for eligible tuition and other fees paid for courses you took in 2022 if you meet all of these conditions:

  • you file an Income Tax and Benefit Return for the year
  • you were a resident in Canada throughout the year
  • you were at least 26 years old and less than 66 years old at the end of the year
  • your latest notice of assessment or reassessment for 2021 shows a Canada training credit limit (CTCL) for 2022
  • you paid your tuition or fees to an eligible educational institution in Canada or to certain institutions for an occupational, trade or professional examination
  • your tuition and fees are eligible for the tuition tax credit

The amount you can claim for the CTC each year is an amount up to, but not exceeding, the lesser of:

  • your CTCL for the year
  • 50% of the eligible tuition and other fees paid to an educational institution in Canada for courses you took in 2022, or fees you paid to certain bodies for an occupational, trade or professional examination taken in

 

The key point above is that the tuition was to an eligible educational institution. In most cases the institution would also issue a T2202 form.