Volunteer Firefighter and Search and Rescue Tax Credit

In Canada, individuals who worked as volunteer firefighters or search and rescue volunteers and completed a certain number of hours can take advantage of specific tax benefits on their tax return. The specifics of the credit can vary by province or locality, but generally, it allows eligible volunteers to reduce their income tax liability by a certain amount. In 2011, the Canadian government introduced the volunteer firefighter tax credit, and later in 2014, the volunteer search and rescue tax credit was introduced. These tax benefits are non-refundable credits designed to recognize and support individuals who volunteer their time and efforts in emergency and rescue operations. Since they are non-refundable tax credits, individuals can receive a benefit of 15% of the amount they claim.

Eligibility for the Credit

To be eligible to claim the volunteer tax credit, individuals must:

Be a member of an eligible fire or rescue department.

Be a volunteer firefighter or search and rescue volunteer during the year.

Have completed at least 200 hours of eligible volunteer firefighting or search and rescue services during the year.

How Much Can Be Claimed

- Individuals can claim up to $3,000 as an exemption for the volunteer firefighter amount (VFA) or search and rescue volunteer amount (SRVA) if they volunteered at least 200 hours in either activity, or combined hours in both activities, within the same organization during the year.

- Alternatively, individuals can claim up to $1,000 as an exemption for each eligible employer if they worked for more than one employer during the year and received a T4 slip with the exemption amount shown in box 87.

Note: Individuals can claim either a maximum of $3,000 or $1,000 for each employer, but not both in the same year.

Examples

Case 1: If an individual qualifies for the $3,000 tax exemption and does not have a T4 slip, they will receive a $450 tax benefit.

- $3,000 × 15% = $450

Case 2: If an individual received T4 slips from 4 employers, each showing $1,000 in box 87, they will receive a $600 tax benefit.

- $4,000 × 15% = $600

Key Points to Remember

1. Individuals can combine the hours they volunteered in both firefighting and search and rescue if they worked for the same organization, but they must claim only one credit (VFA or SRVA) — they cannot claim both in the same year.

2. If an individual worked as a paid employee for the same organization performing similar duties to those as a volunteer, they cannot include those paid hours in their claim for the credit.

3. If an individual provided volunteer emergency services for multiple employers, they can claim up to $1,000 for each eligible employer. This amount is shown in box 87 of the T4 slip, which is tax-exempt. The total income reported on the T4 slip is the sum of box 14 and box 87. For example, if box 14 shows $10,000 and box 87 shows $1,000, the total income for the year is $11,000, but the individual will only be taxed on the $10,000 amount if claiming the exemption for box 87.

4. Individuals must choose either the $3,000 tax credit or the $1,000 credit per employer (if they have a T4 slip showing box 87), but cannot claim both in the same tax return.

5. Each province may have its own rules, so it’s important to check the specific regulations in your area.

Eligible Services to Qualify for the Credit

Not all volunteer work qualifies for the credit. To be eligible, individuals must have volunteered as a firefighter or search and rescue team member. The following services are eligible for the credit, as listed on the CRA website:

Responding to, and being on call for, emergency calls.

Attending meetings held by the eligible department.

Participating in required training related to volunteer work.

Application Process

1. Ensure that you qualify as a volunteer firefighter or search and rescue volunteer. Check the eligibility requirements for the credit.

2. Obtain a signed certification from the organization you volunteer with. This certification should confirm your hours and role.

3. When filling out your tax return (using Form T1 General), include the volunteer credit. The amount you can claim is typically up to $3,000 for the volunteer firefighter credit or the search and rescue credit, but not both.

4. On your tax return, enter the amount of the credit on the appropriate line. If claiming $3,000, enter the amount on line 31220 or 31240 of your return.

5. If you are claiming a $1,000 credit from different employers and have received T4 slips showing the amount in box 87 (or box L-2 of your RL-1 slip, if you're a resident of Quebec), enter this amount on line 10105 of the return.

6. File your tax return online or by mail, ensuring you include all necessary documents and forms.

7. The CRA may ask you to provide certification from the relevant department to confirm the number of hours you volunteered, so keep your receipts or slips in case the CRA requests proof.

If you meet the eligibility requirements, claiming this credit can help reduce your tax burden.