Save transit passes to collect tax credit: Canada Revenue Agency

OTTAWA (CP) - It's time to get in the habit of saving your transit passes and receipts - at least if you plan to claim a new tax credit. The Canada Revenue Agency issued a notice this week telling transit users to keep monthly passes and receipts if they want to make a claim for using public transit when filing 2006 tax returns.

The credit was announced as part of the federal budget in May, and allows transit users to claim the cost of passes for commuting on buses, streetcars, subways, commuter trains and ferries.

It takes effect July 1, said agency spokeswoman Jacqueline Couture.

There are certain criteria for submitting just a pass, without a receipt. It must indicate it's a monthly (or longer duration) pass; carry the date for which it's valid; name the transit authority and amount paid; and carry the identity of the rider, or some sort of unique identifier.

Without all that information, a dated receipt is also required - or cancelled cheques or credit card statements to support the claim, the agency says.

The credit will be available for the portion of passes used on or after July 1, even if the pass was purchased before that date, the revenue agency says.

© The Canadian Press, 2006