If you use public transit, you can claim the cost of certain public transit passes to reduce the taxes you owe.
You can claim the cost of monthly or annual passes for unlimited travel within Canada on any of the following: buses, streetcars, subways, commuter trains, or ferries. You may also be able to claim the cost of shorter duration passes and electronic payment cards in certain circumstances.
When claiming the public transit amount, keep your transit pass in case the Canada Revenue Agency (CRA) asks you to verify your claim. If you do not have your passes, you can also provide your receipts, cancelled cheques, or credit card statements to support your claim. Continue reading
(Source: CanadaTaxCredit) — Public Transit Tax Credit is a non-refundable tax credit to help individuals cover their cost of public transit. The tax credit for public transit passes is a non-refundable tax credit for the cost of buying a monthly (or longer duration) pass for commuting on buses, streetcars, subways, commuter trains and local ferries.
The federal budget introduced a non-refundable public transit tax credit based on the cost of monthly public transit passes for travel.
In addition to monthly public transit passes, the public transit tax credit has been expanded to include costs for:
- Shorter duration passes if each pass entitles you to unlimited travel for an uninterrupted period of at least 5 days and enough of these passes are purchased so that you are entitled to unlimited travel for at least 20 days in any 28-day period.
- Cost-per-trip electronic payment cards if the card is used for at least 32 one-way trips during an uninterrupted period not more than 31 days and if the card is issued by a public transit authority that records and provides a receipt for the cost and usage of the card.
For example, if your monthly transit pass costs $100, the amount you can claim in 2010 would be $1,200, resulting in a tax credit of $180.00 (twelve months multiplied by 15%).