Canada Training Credit

Since this is a carry forward credit will TaxCycle be able to track it in the future?

Since it is new in 2019 I’ll be adding a static paragraph to my client letter saying something like

There is a new refundable tax credit called the Canada training credit available for eligible tuition and other fees paid for courses taken in 2020 and subsequent taxation years. The credit for 2020 will be the lesser $250, and half of the eligible tuition and fees paid to an eligible educational institution in respect of the year.

but in future years it would be nice to be able to have a way of letting clients know how much credit they have built up, what they have used and how much is left for the future.

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2019-investing-middle-class/canada-training-credit.html

… However, you likely won’t want to be saying that to clients under age 26 or over age 65 (S122.91(2))…

2 Likes

@joe.justjoe1 Yes, but I know how to code the letter so only clients in that age will get the paragraph. I can’t code the letter with the other information about the credit if TaxCycle isn’t tracking it.

General information regarding TaxCycle and the Canada training credit;

Currently, if there is no opening Balance for Canada training credit limit (ie new client) it seems TaxCycle does generate a Diagnostic Review message for someone who is over 25 and has tuition fees. The message says “Does the client have a Canada training credit limit?”

AFR does not import or pick up the Canada Training Credit Limit carried forward from 2019. This is likely a CRA and Represent a Client shortcoming rather than a TaxCycle issue. Hopefully, in future the CRA will make this figure available to be scraped and imported with AFR.

TaxCycle does keep track of the Opening and closing balances for the Canada training credit limit, and properly applies them if a student over 25 (and under 65) has tuition fees in the current year.

2 Likes