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What is the tax credit for public transit
passes?
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
ferries.
How do I claim the tax credit for public
transit passes?
You
will be able to claim the tax credit for public transit passes on your
2007 income tax return for the amounts you have
paid for travel that
occurs after January 2007.
What will I need to support my claim?
At a
minimum, you will need to keep your expired monthly transit passes
for months after January 2007 to support your claim.
If your transit pass displays all of the
following information, the pass
itself will be sufficient to support a claim for
the tax credit:
-
an indication that it is a monthly (or longer
duration) pass;
-
the date or period for which the pass is
valid;
-
the name of the transit authority or
organization issuing the pass;
-
the amount paid for the pass; and,
-
the identity of the rider, either by name or
unique identifier.
If the pass does not have all of this
information, you will also need to
keep receipts, cancelled cheques or credit card
statements, along with
your pass(es), to support your claim. The credit
will be available for the
portion of the pass that is used on or after Jan1st, even if the pass is
purchased before that date.
You will not need to submit any documentation
when you file your
return, but you must keep it in case the Canada
Revenue Agency (CRA)
asks for it in verifying your claim.
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How much can I claim?
You
can claim the full amount paid for a public transit pass, or for the
cost of passes for multiple transit systems (see
question 5 below).
The tax credit is a non-refundable tax credit,
which means that the
amount you claim is multiplied by the lowest
personal income tax rate
for the year (15.5 per cent in 2007) and is then
deducted from your tax
otherwise payable.
I use more than one method of public transit
to commute. Can I
claim more than one type of pass?
Yes,
you can claim the full amount of any combination of transit passes.
Can I claim the credit on behalf of my
family?
Yes,
you can claim the tax credit for public transit passes on behalf of
your spouse, common law partner, and your
children under the age of
19, to the extent that these amounts have not
already been claimed.
In my area, passes for
January are on sale
starting mid-Dec. If I buy
my January pass in December , does it mean that I cannot
claim it?
No, as
long as you keep your receipt and your pass, you can claim
amounts you have paid for travel that occurs
after January 2007, as
would be the case of your January pass, no matter
when you purchased it.
Where can I get more information about this
tax credit?
Additional
information on how to claim the tax credit for public transit
passes will be posted soon on the Canada Revenue
Agency Web site at
www.cra.gc.ca.
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