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Friday, July 28, 2006.
Toronto - Transit Pass Tax Credit
Begins. Just a month ago, I had the pleasure of throwing out my monthly transit
pass once the month ended. Not anymore. 2006 federal budget has brought in a new
tax credit for monthly transit pass users starting July 1, 2006. This will be a non-refundable (Non-refundable tax credits are used to
reduce or cancel your income tax payable. A non-refundable tax credit cannot
reduce the tax owed below zero If the total of these credits is more than the
amount you owe, you will not get a refund for the difference) tax credit for
the cost of buying a monthly (or longer duration) pass for commuting on buses,
streetcars, subways, commuter trains and local ferries.
Don’t throw out your transit pass
as it may have all the information you need to claim this tax credit on your
2006 income tax return. Your monthly pass will be enough to support your claim
if it shows all of the following information:
- it
is a monthly or longer pass
- the
date or period for which the pass is valid
- name
of the authority which issued the pass
- amount
- identify
of the rider
If your pass is missing some of
the above, you'll also need to produce receipts, canceled cheques or credit card
statements to support your claim. You will be able to claim the full amount of
all transit passes if you use more than one transit system.
TTC (Toronto Transit Commission) riders will
receive an official receipt in early 2007 for July 2006 to December 2006. You
must retain both your official receipt and
MDP Metropass to support your tax credit
claim. GO Transit (Greater Toronto Transit Authority) will not issue any
official tax receipt as GO pass has all required info as stated above. If you
use any other transit system, please check with that system for more
information. For more info, please visit Canada Revenue Agency website:
Canada
Revenue Agency
