# CRA query - Transit usage



## pnky (Jul 16, 2012)

Need some help. I did something incredibly stupid but it was a genuine mistake.

I claimed $3000 on transit usage in my tax returns last year. It got flagged by CRA and they have sent me a letter asking for documentation to support this number.

I just downloaded the Usage report from my GO Transit account (Presto) - it matches the number I put on my return. What I realized only now, was the following text:

"
Eligibility for the Federal Public Transit Tax Credit is determined by the Canada Revenue Agency. You can claim the cost of any 32 or more one-way trips:

•Taken on a single transit agency, and
•During an uninterrupted period of 31 days or less.
"

I assume it means I can only put in the amount for a single month with the largest number of trips. Which means I have way overshot the limit.

What should I do now ?


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## 0xCC (Jan 5, 2012)

It isn't totally clear to me but I think you can claim each pass that allows you to travel 32 or more times one way in a 31 day period.

http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/364/lgblty-eng.html

Basically you should be able to claim the passes like a monthly pass. You might want to call CRA to confirm that though.


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## gibor365 (Apr 1, 2011)

> ◦the card is used to make at least 32 one-way trips during an uninterrupted period not exceeding 31 days


My understanding that if you have at least 16 round trips for every month, you can claim everything from transit usage report.

Just sent CRA your report and let them calculated by themselves ... it becomes pretty confusing calculation if you took more than 1 week vacation


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## gibor365 (Apr 1, 2011)

> You might want to call CRA to confirm that though.


 from my experience CRA clerk will open same link you provided, and just read you what is written there ... if you would like to clarify, they will again just read you what is written there  , so better just send them your full usage report.



> Basically you should be able to claim the passes like a monthly pass


 they don't indicate that it should be monthly, so you can select any 31 days period, ex. from Jan 10 until Feb 11, than from Feb 6 to Mar 9 etc... it's pretty stupid, but this is ridiculous CRA


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## Eclectic12 (Oct 20, 2010)

If you mean you can claim one month's worth out of the year ... I doubt it.

Articles like this talk about monthly passes or longer.
http://turbotax.intuit.ca/tax-resources/public-transit-tax-credit.jsp

If longer than monthly is okay, then it looks more to me like the gov't is trying to screen out someone who is using transit once in a while from those who depend on it. 

For example, the short term pass section talks about:


> ... each pass entitles you to unlimited travel for at least 5 consecutive days;
> and you buy enough of these passes for unlimited travel for at least 20 days in any 28-day period.


http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/364/lgblty-eng.html


So if you buy one five day pass in a month, that month won't count but where for the other eleven months count, it reads to me that the qualifying eleven months can be claimed. 


So assuming the $3K is the total cost over the year - I believe you only need to check that in any given 31 day period, there is at least 32 one way trips to claim the full amount for that month.

For example, in the 30 days of Jun with with two one way trips a day (one to get to the office and one to return), then as long as sixteen working days or more Transit was used - as I read it, the full cost of the trips would be included.

The likely risk areas are where one took say consecutive two week's vacation in the same month. 
That might leave only twenty one, one way trips.


It looks like you might have to reduce it a bit but I suspect the reduction is far less than you fear.


Cheers


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## Eclectic12 (Oct 20, 2010)

gibor said:


> .. they don't indicate that it should be monthly, so you can select any 31 days period, ex. from Jan 10 until Feb 11, than from Feb 6 to Mar 9 etc... it's pretty stupid, but this is ridiculous CRA


It is under the qualifications for "Electronic payment cards" where as I understand it, there's no time limit on when the trips were taken (i.e. it could be six trips this month, eight trips next month, two trips the month after ...).

It was easier when only monthly/yearly passes qualified ... but I suspect you won't find many supporters to go back. :biggrin:
http://www.taxtips.ca/filing/transitpasstaxcredit.htm


Of course the other question is what input CRA had as it seems more to be aimed at avoiding extending the tax credit to infrequent transit users.


Cheers


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## gibor365 (Apr 1, 2011)

> The likely risk areas are where one took say consecutive two week's vacation in the same month.
> That might leave only twenty one, one way trips.


As I mentined above, it souldn't be calendar month (and it's just impossible for Feb ), thus 2 weeks vacation you can split , and to include 1 week in previous 31 days period and 1 week in other 31 days period and it should work fine...



> It was easier when only monthly/yearly passes qualified


 yeah, but seeral years ago GO Transit cancelled monthly passes and it's mandatory to hace Presto card.



> Of course the other question is what input CRA had as it seems more to be aimed at avoiding extending the tax credit to infrequent transit users.


 than why 16 round trips and not 15 or 17 ?! 
I don't think CRA will calculate all possible splits, and if you have 1 or 2 31 days periods when you took 15 round trips, they won't bug you.... but who knows


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## Eclectic12 (Oct 20, 2010)

0xCC said:


> It isn't totally clear to me but I think you can claim each pass that allows you to travel 32 or more times one way in a 31 day period.


It's under the "Electronic Payment Card" section so there may be no pass involved.
If it is unlimited for a monthly or longer period ... AFACIT, the full amount is eligible.


The formula comes into play for short term passes (ex. five days) or electronic payment cards.


It looks like it is intended to extend the same tax credit to heavy transit users while adjusting to the alternate forms.


Cheers


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## Eclectic12 (Oct 20, 2010)

gibor said:


> As I mentined above, it souldn't be calendar month (and it's just impossible for Feb ), thus 2 weeks vacation you can split , and to include 1 week in previous 31 days period and 1 week in other 31 days period and it should work fine...


They say "31 days or less" so it doesn't have to be calendar month ... it is just easier to break it up that way.

And yes, choosing a different period with deal with two weeks vacation - I was highlighting what the risk of sticking to the calendar periods could be.




gibor said:


> ... yeah, but seeral years ago GO Transit cancelled monthly passes and it's mandatory to hace Presto card.


I thought I'd read of systems this has happened on ... the ones closest to me are still issuing monthly passes.




gibor said:


> ... than why 16 round trips and not 15 or 17 ?!


Likely because 16 round trips works out to roughly three work weeks, where most of the time - a regular transit user is going to have two one way trips per day.
Without knowing who made the decision ... there's no way to check.




gibor said:


> I don't think CRA will calculate all possible splits, and if you have 1 or 2 31 days periods when you took 15 round trips, they won't bug you.... but who knows


Not sure either what's programmed ... but it does say "31 days or less" so unless one is actually doing one trip a day frequently, 16 round trips with Sat & Sunday off works out to 22 consecutive days so Feb fits.


Cheers


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## gibor365 (Apr 1, 2011)

> Likely because 16 round trips works out to roughly three work weeks


 but 3 work weeks is exactly 15 round trip and not 15  ... also we have sometimis holidays  so more logically would be 14 days...


> Not sure either what's programmed


 don't think something is programmed.... It could've be if Go Transit would send reports electronically.... I just can imagine how our high-paid CRA workers calculating lines with one finger :biggrin: 
More confusing those rules, more government workers we need! 

and in any case, CRA doesn't say that it should be calendar month


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## Davis (Nov 11, 2014)

There is nothing wrong with what CRA wrote. Don't let Gibor's hysterics concern you. His grasp of English is not that strong, so he's not going to be able to help you understand tax ipmatters. He's just looking for any reason to bash CRA, even though he knows squat about tax administration. 

CRA is doing a random check. If you have documentation to support your claim, send it in, and you won't hear from CRA again. This is not anything to be worried about.


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## gibor365 (Apr 1, 2011)

pnky, next time , you can PM any question directly to Davis and enjoy her (or his) stupid answer in perfect English :biggrin:


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## pnky (Jul 16, 2012)

Thanks everyone, I have downloaded the Transit Usage Report, will send it to CRA. Thanks for all your inputs.


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## Eclectic12 (Oct 20, 2010)

gibor said:


> but 3 work weeks is exactly 15 round trip and not 15


I'm not following what 15 round trips is not fifteen ... if you mean fifteen work days - I'm really confused as someone who uses transit to go to plus return from work, 15 round trips would typically be fifteen work days.




gibor said:


> ... also we have sometimis holidays  so more logically would be 14 days...


I'm not sure one of or two of holidays matter as for a round trip person - fifteen round trips in 28, 30 or 31 day months leaves lots of room without affecting whether one qualifies.

In any case, with the threshhold set as 32 one way trips - for a round trip person, the minimum consecutive days works out to 22 consecutive days, where one needs to reshuffle things due to say a four week vacation.




gibor said:


> More confusing those rules, more government workers we need!
> and in any case, CRA doesn't say that it should be calendar month


Yes ... though calendar months may work out but I haven't had to worry about it as I haven't been eligible.


Cheers


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## 0xCC (Jan 5, 2012)

Eclectic12 said:


> I'm not following what 15 round trips is not fifteen ... if you mean fifteen work days - I'm really confused as someone who uses transit to go to plus return from work, 15 round trips would typically be fifteen work days.


I think that gibor had a typo there, I think he meant to say "3 work weeks is exactly 15 round trips and not 16" because the requirement for eligibility from the CRA is that there are 32 single trips in a 31 day period. In other words, 16 round trips in 31 days.


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## Xoron (Jun 22, 2010)

Eclectic12 said:


> It was easier when only monthly/yearly passes qualified ... but I suspect you won't find many supporters to go back. :biggrin:
> http://www.taxtips.ca/filing/transitpasstaxcredit.htm


<puts up his hand>

I've grown to put up with presto, but nowhere nearly as convenient as the old pass system when you're doing the same trip every day.


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## gibor365 (Apr 1, 2011)

> think that gibor had a typo there


 yeah


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