Sunday, February 2, 2014

Take Transit & Get a Deduction on Your Income Taxes

This past summer, I increased my 11 year old daughters independence.  She attended a local daycamp at which my husband dropped her off in the morning, but then I had her independently take the city bus home from camp.  I got home from work around the same time that she got home from camp on the city bus.  She has taken the bus with me many times, and knows how the bus system works and knew the bus route ahead of time.  No transfers, just a direct route. 

She LOVED it.  She loved having the independence of doing it on her own.

In order to do this without having to find the correct amount of change every morning, I bought her a monthly bus pass for the month of July.  I had hoped that I would have time to teach her how to get to the library as well, but unfortunately I didn't have have a chance to teach her this route.

As a result of buying the bus pass, I can now claim that expense as a deduction on my taxes this year.

Does anyone in your household take the bus, train or ferry to work or school on a regular basis?

You can claim a deduction on your income tax for Public Transit Amount (line 364 on your income tax return) if you have any of :

1) a monthly pass
2) a series of shorter passes that show that you took public transportation for at least 20 days in any 28 day period
3) an electronic payment card (like Presto) used for at least 32 one way trips in any 31 day period

The passes can be for yourself, spouse or kids under 19 years of age.

Does your teen buy passes to get to their part time job? Do you take the GO Train to work?  Remember to keep your receipts to claim this fabulous deduction!

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