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You can claim the cost of monthly transit passes
as an income-tax credit



Grand River Transit has posted a timely reminder on its website — and the reminder is useful to everyone who buys monthly transit passes in Canada. If you’ve bought monthly transit passes in 2010, remember that you’re eligible for a public transit tax credit on your income tax returns.

To claim your tax credit, you must retain your pass for each month that you’re claiming a credit. Most transit agencies mark monthly passes with the value of the pass. Fill out and sign your pass to make sure it is valid.

You can claim the full amount you 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 you multiply the amount you claim by the lowest personal income tax rate for the year — 15 percent for 2010 — and is then deduct the result from whatever tax you would pay.

You can claim the full amount of any combination of transit passes — for example if you regularly travel by local transit and then GO Transit. You can also claim the tax credit for public transit passes on behalf of your spouse, common-law partner and any children under the age of 19 — if your family members have not already claimed the tax credit.

To claim the credit, you can enter the total amount you (or you and your family) paid for transit passes in 2010 on Federal Tax Schedule 1 (T1-2010) - Line 364: Public transit passes. If you are filing a paper return, do not include your receipts and passes, but be sure to keep them in case someone from the Canada Revenue Agency asks you for them at a later date. If you are filing electronically, keep all of your documents.

You can get more information about the tax credit for public transit passes from the Canada Revenue Agency web site at www.cra-arc.gc.ca. You may also visit www.transitpass.ca to calculate the amount of your tax credit.