There are two new tax credits to consider for your personal return, starting with tax year 2020.
1. To help Canadian workers acquire the skills they need to succeed in a changing world, the federal government is establishing a new Canada Training Benefit, a personalized allowance that can be carried forward to help individuals plan and get the training they need.
This is a refundable tax credit of $ 250 / year that a taxpayer is entitled to accumulate.
Targets Canadian workers aged 25 to 64.
Canadians automatically accumulate a “notional” tax credit amount of per year up to a limit of $ 5,000.
Workers must earn at least $ 10,000 from a job including maternity and parental benefits) and less than $ 150,473 in 2020 ($ 147,667 and less in 2019) to have generated a “notional” amount of $ 250 in credit tax in 2019 and / or 2020, as the case may be. They have to file an income tax return.
The accumulated credit can be claimed and applied to the training costs of colleges, universities and eligible institutions (such as the CQFF) that offer vocational skills training paid as of 2020, up to 50% of eligible expenses.
This credit differs from the existing education deduction in that it is not necessary to receive a diploma.
The provincial government does not create any such credit, and the provincial education deduction will be reduced by the amount of this federal credit claimed.
You should discuss this with your tax professional to find out which of the options is the most advantageous for you, given all the circumstances.
2. Temporary tax credit from 2020 to 2024 for individuals and for digital subscriptions to eligible news services, such as certain media.
This is a temporary 15% non-refundable tax credit on amounts paid by individuals for qualifying digital information service subscriptions. As such, this credit will allow individuals to claim up to $ 500 in eligible digital subscription fees in a tax year.
