Q: I use a GTA weekly pass. Am I correct to assume the credit only applies to monthly passes? This could convince me to switch to obtain the benefits.
A: The past several days, my e-mail was filled with interest about the new Tax Credit for Public Transit Passes.
The tax credit applies for the use of commuting by subway, buses, commuter trains, streetcars and ferries. Therefore, individuals that use both a ferry and subway will qualify for the credit, but only if they purchase monthly passes or a greater duration. Public transit users that purchase tokens, tickets or weekly passes will not qualify (nor will private taxi users or those who drive to work). Hopefully, “the powers that be” acknowledge frequent transit users to claim the credit for tickets and weekly passes.
Beginning this past Canada Day, an individual may also claim the non-refundable tax credit for him/herself, spouse or commonlaw partner, and children under 19 years old, provided that they were not already claimed. An individual’s claim can reduce taxes owing by approximately $180 (based on TTC monthly passes for one year, $1,200) plus family, if not already claimed. Ticket and weekly pass buyers will have to do the math to see if it is worth buying monthly passes.
The following must be retained to support your claim (www.cra-arc.gc.ca):
-
Your expired monthly transit passes after June.
-
Receipts, cancelled cheques or credit card statements.
-
The pass itself may be sufficient to support the claim provided it indicates: a monthly (or longer duration) pass; date/period for which the pass is valid; name of the transit authority or organization issuing the pass; amount paid; I.D. of rider.
Check your recent purchases: Starting July 1, the reduced 6 per cent GST has been in effect. Businesses and consumers should pay close attention.
Henry Choo Chong, CGA, can be reached at 416-590-1728, ext. 304, or e-mail questions to to choochonghcga@yahoo.ca
