Public transit users across Canada are eligible for a break on the cost of taking public transit
Transit passes valid for a month or longer, including but not limited to U-Passes and Employee Passes, qualify for a non-refundable tax credit (15.5 per cent ). The amount you claim is multiplied by the lowest personal income tax rate for the year and is then deducted from your tax otherwise payable. All transit users, including commuters, students and seniors, will qualify. The credit will be claimable by a taxpayer with respect to his or her costs, or those of a spouse or common-law partner and children under 19 years of age.
What will my tax credit be worth?
|PASS TYPE||MONTHLY COST||ANNUAL COST||MAXIMUM CREDIT 2008 ONWARDS|
How do I make a claim?
Individuals making claims will be required to retain their receipts or passes for tax verification purposes. 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 (for up to five years).
Students who have been assessed a U-Pass fee can download and print a copy of their U-Pass fee assessment through the Student Services Centre website. Once you have logged into the SSC with your login and password, click on the link that says U-Pass receipt and download the receipt for your records. The Canada Revenue Agency does not require you to submit your receipt with your tax submission, however in the event of a tax audit, we encourage you to print your receipt and hang onto it for five years.
Employer Pass holders:
Your T4 slip will include the annual amount you have spent on your Employer Pass. This information will be used by the Canada Revenue Agency to calculate the amount of your transit tax credit. Employer Pass holders should keep a copy of their pay-stub. The final pay-stub of the year is sufficient and yes, a photocopy is fine. You should also keep a photocopy of your pass (make a copy before returning it to TransLink at the end of the year). 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.
Monthly Fare Card holders:
If you purchase a monthly FareCard, you should save your pass and write your name and phone number in the space provided on the back so as to meet Canadian Revenue Agency requirements.
A reminder… You do not need to submit your transit pass receipts in order to claim the tax credit; however, we encourage you to hold onto this information in the event of an audit.
Where can I get more information?
General Information: http://www.cra-arc.gc.ca/whtsnw/tms/trnst-eng.html.
Employer Pass: www.trek.ubc.ca/programs/transit/pdf/taxcreditquestions.pdf