ARCHIVED – Volunteer Firefighter Tax Credit (VFTC)

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1. What is the new Volunteer Firefighter Tax Credit (VFTC)?
2. I am a volunteer firefighter. Do I qualify for the VFTC?
3. What are eligible volunteer firefighter services?
4. How are my hours of eligible volunteer firefighter services determined for my on call duty?
5. I am currently a volunteer firefighter. Do my hours of service completed since January 1, 2011 count towards the 200-hour threshold?
6. How is the VFTC calculated?
7. I received a payment for my duties as a volunteer firefighter. Do I still get the VFTC?
8. I am eligible for a $1,000 exemption related to the payment I received for carrying out volunteer firefighter duties. Is this exempt income reported on my T4 information slip?
9. How will I claim the VFTC?
10. Where can I get more information about this new tax credit?

1. What is the new Volunteer Firefighter Tax Credit (VFTC)?

For 2011 and subsequent years, the budget proposes a new non-refundable tax credit, based on an amount of $3,000, for certain volunteer firefighters.

2. I am a volunteer firefighter. Do I qualify for the VFTC?

To qualify for the new credit, you must meet the following conditions:

• you must be a volunteer firefighter in the year; and
• you must complete a minimum of 200 hours of eligible volunteer firefighter services with one or more fire departments in the year.

However, if you were also engaged by the same fire department (other than as a volunteer) for the same or similar duties, you cannot include any hours related to that department in determining if you have met the 200-hour threshold.

A written certification from a fire chief or delegated official within the fire department may be requested to verify the number of hours of eligible volunteer firefighter services you performed for the department. The certification should contain the following:

• the volunteer firefighter's full name;
• the number of hours of eligible volunteer firefighting services performed by the volunteer in the year;
• the year when the services were performed; and
• the fire chief's or delegated official's full name, title, work address, and phone number.

3. What are eligible volunteer firefighter services?

Eligible volunteer firefighter services include the services you provided as a volunteer firefighter to a fire department, which must consist primarily of the following (primary services):

• responding to and being on call for firefighting and related emergency calls as a firefighter;
• attending meetings held by the fire department; and
• participating in required training related to the prevention or suppression of fire.

Other services you provided as a volunteer firefighter to a fire department are also eligible, such as, the maintenance of vehicles and equipment used by the fire department and the delivery of educational sessions undertaken by the fire department.

For the purpose of counting the number of hours of eligible volunteer firefighter services, the number of hours devoted to the primary services described above must exceed the number of hours devoted to other services for a particular fire department.

For example: A volunteer firefighter completes 110 hours of primary services and 200 hours of other services for a fire department. The total number of hours of eligible services is 110 hours of primary services plus 109 hours of other services for a total of 219 hours. The volunteer firefighter meets the 200-hour threshold.

4. How are my hours of eligible volunteer firefighter services determined for my on call duty?

In general, you should rely on the fire department to determine the number of hours of eligible volunteer firefighter services that you have completed in the year. The applicable policies and procedures of a fire department would be applied in determining the number of hours that you were on call for firefighting and related emergency calls as a firefighter.

5. I am currently a volunteer firefighter. Do my hours of service completed since January 1, 2011 count towards the 200-hour threshold?

Yes.

6. How is the VFTC calculated?

The VFTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2011) by $3,000. For 2011, the non-refundable credit will be $450.

7. I received a payment for my duties as a volunteer firefighter. Do I still get the VFTC?

As a volunteer firefighter, you may be eligible for an income exemption of up to $1,000 if you received a payment from a government, municipality, or other public authority for carrying out volunteer firefighter duties. If you choose to claim this exemption, you will not be eligible for the new VFTC.

8. I am eligible for a $1,000 exemption related to the payment I received for carrying out volunteer firefighter duties. Is this exempt income reported on my T4 information slip?

For 2011 and subsequent years, the income exemption related to volunteer firefighter duties will be identified on your T4 information slip.

9. How will I claim the VFTC?

Beginning with the 2011 personal income tax and benefit return, a new line will be incorporated into the Schedule 1, Federal Tax to allow you to claim the credit.

10. Where can I get more information about this new tax credit?

The CRA is committed to providing taxpayers with up-to-date information. The CRA encourages taxpayers to check its Web pages often. All new forms, policies, and guidelines will be posted as they become available.

In the meantime, please consult the Department of Finance Canada's Budget 2011 documents for details.

Date modified:

2015-07-15