The Public Transit Tax Credit can be claimed by you, your spouse and/or dependent under 19 years under December 31 of the tax year. Although it seems easy enough to take the tax credit, CRA often asks for proof after you filed your tax return, so make sure you know the rules. 

Eligibility

These passes must allow unlimited travel within Canada on:

  • local buses; commuter trains; commuter buses; local ferries.

You can also claim the cost of Short-term passes if:

  • - each pass entitles you to unlimited travel for at least 5 consecutive days; and

    - you buy enough of these passes for 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 over a maximum of 31 consecutive 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.

Note that unless the ride/trip passes provide for unlimited travel, the costs will not be eligible for this credit.

 

What proof do you need to support your claim?

  • the date or period for which the pass is valid;

  • the name of the transit authority/organization issuing the pass or card;

  • the cost of each trip or pass; and

  • the rider's name or unique identifier (the unique identifier has to be linked to the rider).

  • If the pass, card, or usage report does not contain all of the information mentioned above, you will also need copies of all receipts, cancelled cheques and/or debit/credit card statements.

The above information is of a general nature only and should not be relied upon for specific situations. Click here for additional tax accounting services information.  Call Marlies Y Hendricks CPA at 416-766-3941 to discuss your tax case in the event of a tax audit and to set up an appointment if you'd like professional help to represent you.