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Transit Bus Pass – Tax Deduction
Federal Tax Credits – Save your monthly bus pass
You may be eligible to claim a tax deduction if your child is using public transit transportation to go to school.
To be eligible to claim a tax credit for public transit use, you need the following:
1) an indication that it is a monthly (or longer duration) pass;
2) the date or period for which the pass is valid;
3) the name of the transit authority or organization issuing the pass;
4) the amount paid for the pass; and,
5) 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.
If you are a monthly pass holder, print your name, and phone number on the back of your pass as applicable after purchase.
Only monthly and yearly passes are eligible for the Federal tax credits. So tickets, day passes, premium fees and cash fares are not eligible for the credits.
You do not need to submit any documentation to claim a tax credit for public transit use when you file for your income tax return but, you are advised to keep your passes and receipts in case the Canada Revenue Agency (CRA) needs to verify your claim.
For more information on tax credit for public transit use, visit the Canada Revenue Agency web site.
1. 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.
2. How do I claim the tax credit for public transit passes?
You are able to claim the tax credit for public transit passes on your income tax return for the amounts you have paid for travel.
3. What will I need to support my claim?
At a minimum, you will need to keep your expired monthly transit passes 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:
a) an indication that it is a monthly (or longer duration) pass;
b) the date or period for which the pass is valid;
c) the name of the transit authority or organization issuing the pass;
d) the amount paid for the pass; and,
e) the identity of the rider.
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.
The School will not provide tax receipt for public transit transportation. You must retain a copy of your monthly bus pass and proof of payment.
4. 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.
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 and is then deducted from your tax otherwise payable.
5. Can I claim the cost of a Yellow Bus Transportation?
No. Yellow Bus transportation is not considered to be Public Transit Transportation.
6. 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.
7. 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.
8. Where can I get more information about this tax credit?
Additional information on how to claim the tax credit for public transit passes is available on the Canada Revenue Agency web site.
(Source: Adapted from Calgary Transit Web Site)
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