NOTE: This CRA’s Public Transit Deduction is presently unavailable.
This post is for historical purposes only.
Whether you like it or hate it, it is almost a certainty that TTC fares will be increasing in the City of Toronto at some point later this year or early in 2014. The City of Toronto requires additional funding in order to FINALLY start building subways in the city and the TTC needs extra funds to improve it’s crumbling infrastructure.
Either way, if you are a user of public transit, you need to be aware that you may be eligible for the Canada Revenue Agency’s Public transit deduction.
These passes must permit unlimited travel within Canada on:
- local buses;
- commuter trains or buses; and
- local ferries.
You can also claim the cost of:
Shorter duration passes if:
- each pass entitles you to unlimited travel for an uninterrupted period of at least 5 days; and
- you purchase enough of these passes so that you are entitled to unlimited travel for at least 20 days in any 28-day period
Electronic payment cards if:
- the card is used to make at least 32 one-way trips during an uninterrupted period not exceeding 31 days; and
- the card is issued by a public transit authority that records and provides a receipt for the cost and usage of the card.
Who can claim these deductions?
Only you or your spouse or common-law partner can claim the cost of transit passes (to the extent that these amounts have not already been claimed) for:
- your spouse or common-law partner; and
- your or your spouse’s or common-law partner’s children who were under 19 years of age on December 31, 2012.
I prepare my own tax return. Where does this go?
It goes on line 364 of Schedule 1, Federal Tax, enter your total public transit amount.
Amount shown on a T4 slip – Enter the amount from box 84 on line 364 of Schedule 1.
Note: If your employer paid your public transit pass, it is a taxable benefit included in your employment income.
Reimbursement of an eligible expense – You can only claim the part of the amount for which you have not been or will not be reimbursed. However, you can claim the full amount if the reimbursement is included in your income, such as a benefit shown on a T4 slip, and you did not deduct the reimbursement anywhere else on your return.
Always remember that if you are going to claim this amount you must keep your Supporting Documentation – receipts and transit passes – In case the CRA asks to see them at a later date.
The CRA will need the following in order to support your claim;
Your transit pass must display all of the following information to support your claim:
- 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 CRA will accept receipts (letters) generated by employers or Employer Pass Program Coordinators for employer transit pass programs. The receipt should note the purpose, exact amount received, date of payment, and name of the payee.
Generally, the CRA will NOT consider a bank statement to substitute for a valid receipt, however, if your bank statement clearly indicates the purpose of the debit (for example, Employee FareCard), they will accept it as support for your claim.
If your current accountant does not ask you whether you take public transit, then you need to think about what else they are ignoring, and what other deductions you may be missing.
Passionate about Tax. Passionate about helping people. Providing TRUTH.
A link to the CRA website to verify this information is below.