Ferry Costs Claimable as a Tax Credit
Ferry costs can certainly add up, especially when it’s your daily mode of transportation. But when can you claim them on your personal income tax return?
If you use public transit, which includes BC Ferries, you may be able to claim your ferry costs as part of the Public Transit Tax Credit.
The tax credit is only available to individuals using a monthly transit pass or an electronic payment card. Therefore, to qualify:
- BC Ferries Experience Card: For Denman and/or Hornby Island residents, you must be using a BC Ferries Experience Card to qualify. The Canada Revenue Agency also requires that BC Ferries provides records of your usage and related costs. This can be found on your Travel History Report when you log in to your BC Ferries account.
- 16 round trips per month: The tax credit is available where an individual uses an electronic payment card for at least 32 one-way trips. For Denman and Hornby Island residents, 16 round trips during any consecutive 31 day period qualify. You can combine the trips made by your whole family in calculating the 16 round trips (that’s you, your spouse and your children under 19 years of age).
The Public Transit Tax Credit for the family can either be claimed on one income tax return or allocated between the members of the family.
How much is the tax saving? The Public Transit Tax Credit will reduce any federal taxes you may owe by 15% of the ferry costs you paid.
For more information, please feel free to contact the us or consult the BC Ferry FAQ website below.