Public Transit Pass Tax Credit

Posted by: Frugalis.ca

If you are a commuter using a monthly or longer public transit pass, you may be eligible to save on your taxes. In order to help cover the cost of public transit, the Federal Government in 2006 introduced a Public Transit Pass Tax Credit. Under this plan, taxpayers can receive a 15% tax credit for all eligible public transit passes.

For example, if you spend $100 a month for 12 months on a bus pass, the amount you can claim for 2008 would be $1200, resulting in a $180 non-refundable tax credit. It’s like receiving an indirect discount on your transit pass. Non-refundable means that it is applied to your taxes owed and does not result in a direct cash refund.

So don’t forget to claim your Public Transit Tax Credit when you file your taxes and be sure to keep your receipts and/or passes as proof.

For more information, visit:

http://www.transitpass.ca/