The Federal non-refundable
tax credit for public transit passes was available for 2006 for the
portion of the pass that was used on or after July 1, 2006, even if
the pass was purchased earlier. For 2006, only passes of a duration of one
month or longer were eligible for the public transit tax credit.
The
tax credit was revised effective January 1, 2007 to expand the
eligibility criteria:
weekly passes will qualify for the tax
credit where the taxpayer purchases them for
at least 4 consecutive weeks, and the passes
provide the holder with unlimited use of the
public transit system for a period of 5 to 7
days.
electronic payment cards will qualify for
the tax credit, where
the cost relates to the use of public
transit for at least 32 one-way trips
during an uninterrupted period not
exceeding 31 days, and
that transit usage, and cost of those
trips, are recorded and receipted to the
purchaser by the relevant transit
authority, in sufficient detail as to
allow the Canada Revenue Agency to verify
eligibility for the credit.
The public transit pass tax credit is available for the cost
of passes for commuting on buses, streetcars, subways, commuter trains and local
ferries. A taxpayer can claim the transit pass tax credit on behalf of a
spouse or common-law partner, or the taxpayer's children under age 19.
Your pass must provide
certain information in order to support your claim for a
public transit tax credit, including:
duration of the pass
date or period for which the pass is valid
name of the transit authority or organization issuing
the pass
amount paid for the pass
identity of the rider, either by name or unique
identifier
If the pass does not provide all of the above information,
the transit user is advised by Canada Revenue Agency (CRA) to retain a dated
receipt, or cancelled cheques or credit card statements to support the tax
credit claim.
This is a Federal tax credit, and Yukon Territory also
provides the same tax credit. It is not available for any other province
or territory.
Tax tip: Keep your public
transit passes, and make sure they provide detailed information.
The information on this site is not intended to be a
substitute for professional advice. Each person's situation differs, and
a professional advisor can assist you in using the information on this web
site to your best advantage.
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