I pay for my own public transit monthly pass in Toronto. I am not sure how much of the amount I pay is tax deductible?
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/364/rtrn-eng.html
What amount should I put on my tax return form? The full amount that I paid over the year?
Monthly transit passes qualify for a tax credit.
The instructions tell you to enter all your privately paid transit pass costs, if any, (the total), on line 364.
In addition, if your employer paid the transit passes for all or part of the year, that payment will be entered on your T-4 from your employer; you (or tax software will include this on Line 364.
The amount is added to other amounts, and qualifies for a 15% tax credit.
None of the amount you paid for public transit passes is tax-deductible, because it does not change your net income.
However there is a non-refundable federal tax credit at 15%. This means it can reduce your taxes payable, but cannot bring your taxes owed into negative territory.
Let's illustrate with two artificial examples for one tax year:
Income: $30 000.
Transit pass amount: $1 000.
Gross federal tax: $2 000.
Tax credit: $150.
Federal tax owed: $2000 − $150 = $1 850.
Income: $5 000.
Transit pass amount: $1 000.
Gross federal tax: $0.
Tax credit: $150.
Federal tax owed: $0 − $150 = −$150, but actually capped at $0 because the credit is non-refundable.
