Instructions

1. Open the tax software
2. Review the Background information and Required slips (tax slips, receipts, etc.)
3. Provide all required information for the appropriate sections of the tax software
4. Once completed, compare your results with the solution provided
5. Afterwards, refer to the Takeaway points

Background information

Situation

Pierre and Bora are employees of Lumber Inc. in a Zone A – Prescribed Northern Zone. They also live in Zone A and are eligible to claim the northern residents deduction for the full year. Although Pierre and Bora are both eligible to claim the basic residency amount, they have decided it is more beneficial for Pierre to claim both the basic residency amount and the additional residency amount because Bora works part-time. Pierre also received Advanced Canada workers benefit payments.

Identification information

Required slips

T4 – Statement of Remuneration Paid (Pierre) (Lumber Inc.)

T4 – Statement of Remuneration Paid (Bora) (Lumber Inc.)

RC210 – Advanced Canada workers benefit (ACWB) statement

Review your results

Solution to Claiming the additional residency amount.

Takeaway points

Steps to follow

1. Review their background information and required slips
2. Since Pierre is claiming both the basic residency amount and the additional residency amount, make sure to use Pierre’s profile to claim the Northern residents deductions
3. In Interview setup, tick the boxes next to Other deductions and credits (including school supply, digital news subscription and home buyers’ amount) in the Other topics section and Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section
4. Click T4 and employment income in the left-side menu, then click the + sign next to T4 income (earned in any province except Quebec) and enter the required information
5. Click Other information slips in the left-side menu, then click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500] to enter the information from the tax slip
6. Click Other deductions and credits in the left-side menu, then click the + sign next to Federal line 25500 – T2222 – Northern residents deduction
7. Select Zone A (Resident of prescribed northern area) from the Area for which you are claiming the Northern residents deduction drop-down menu
8. Enter the start and end dates of the northern residence into the Basic residency amount, beginning (dd-mm-yyyy) and Basic residency amount, end (dd-mm-yyyy) fields and enter 365 into the Number of days to consider for the additional residency amount field

Since Pierre is claiming the additional residency amount, Bora does not claim the basic residency amount. UFile automatically calculates the amount of the deduction and claims it on line 25500 of Pierre’s tax return.

For more information, refer to UFile instructions.