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Questions and answers for Metrobus customers about the recently announced tax credit for Canadian transit users.
What is the tax credit for public transit passes?
The tax credit for public transit passes is a non-refundable tax credit for the cost of buying a Metrobus monthly or semester pass.
How do I claim the tax credit for public transit passes?
You will be able to claim the tax credit for public transit passes on your 2006 income tax return for the amounts you have paid for travel that occurs after June 30, 2006.
What will I need to support my claim?
At a minimum, you will need to keep your expired monthly or semester transit passes for months after June 2006 to support your claim.
If your transit pass displays all of the following information, the pass itself will be sufficient to support a claim for the tax credit:
an indication that it is a monthly (or longer duration) pass;
the date or period for which the pass is valid;
the name of the transit authority or organization issuing the pass;
the amount paid for the pass; and,
the identity of the rider, either by name or unique identifier.
Recently, all of our passes were stamped with the price of the pass allowing you to use those passes to support your claim. If you bought a July monthly pass or a Summer semester pass before it was stamped, we will need to stamp the pass at our office at 245 Freshwater Road in St. John’s before you can make your claim. You can visit our office Monday to Friday from 730am to 700pm or on Saturdays from 900am to 400pm.
All of our monthly and semester passes include a space on the back of the pass to include your name and phone number to uniquely identify your pass. Make sure to print your name and phone number in the space provided before making your claim.
You will not need to submit any documentation when you file your return, but you must keep it in case the Canada Revenue Agency (CRA) asks for it in verifying your claim.
How much can I claim?
You can claim the full amount 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 the amount you claim is multiplied by the lowest personal income tax rate for the year (15.25 per cent in 2006) and is then deducted from your tax otherwise payable.
I use more than one method of public transit to commute. Can I claim more than one type of pass?
Yes, you can claim the full amount of any combination of transit passes.
Can I claim the credit on behalf of my family?
Yes, you can claim the tax credit for public transit passes on behalf of your spouse, common law partner, and your children under the age of 19, to the extent that these amounts have not already been claimed.
In my area, passes for July are on sale starting mid-June.
If I buy my July pass in June, does it mean that I cannot claim it?
No, as long as you keep your receipt and your pass, you can claim amounts you have paid for travel that occurs after June 30, 2006, as would be the case of your July pass, no matter when you purchased it.
Where can I get more information about this tax credit?
Additional information on how to claim the tax credit for public transit passes is posted on the Canada Revenue Agency Web site at
www.cra.gc.ca
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