What are the northern residents deductions?

There are two northern resident deductions:

• a residency deduction for having lived in a prescribed northern or intermediate zone
• a deduction for travel benefits you received from employment in a prescribed zone that were included in your income

Who qualifies?

To qualify for the northern residents deductions, you must have lived, on a permanent basis, in one or more prescribed northern or intermediate zones for at least six consecutive months beginning or ending in the tax year.

If you have not lived in a prescribed zone for at least six consecutive months, you do not qualify. After you have lived in a prescribed zone for six consecutive months, you can ask the Canada Revenue Agency (CRA) to change your return to claim the deductions. To do so, follow the instructions how to change your return.

How much can you deduct?

Residency deduction:

There are two parts to the residency deduction: a basic residency amount and an additional residency amount. The amount you can claim for these will depend on whether you lived in a prescribed northern or an intermediate zone.

For 2016, you can claim a basic residency amount of $11 for each day you lived in a prescribed northern zone. Or if you lived in a prescribed intermediate zone, you can claim $5.50 per day.

The additional residency amount is $11 for each day you lived in a prescribed northern zone. Or if you lived in a prescribed intermediate zone, it is $5.50 per day. You can claim this additional amount only if you maintained and lived in a dwelling in the northern or intermediate zone and you are the only person in your household claiming the basic residency amount.

• Example 1: Eric and his wife Geneviève lived in a prescribed northern zone for 300 consecutive days during 2016. Eric’s basic residency amount is $3,300 (300 days x $11). Geneviève’s basic residency amount is also $3,300 (300 days x $11). Eric and Geneviève cannot claim the additional residency amount. This is because they lived in the same dwelling during the same period and they are each claiming the basic residency amount.
• Example 2: Jane lived in a prescribed intermediate zone for 300 days during 2016. Her basic residency amount is $1,650 (300 days x $5.50). Her additional amount is also $1,650 (300 days x $5.50). This gives her a total claim of $3,300 ($1,650 + $1,650). Jane can claim the additional residency amount because she maintained and lived in a dwelling and is the only individual in her dwelling claiming the basic residency amount.

Deduction for travel benefits:

You can claim the deduction for travel benefits that you received from your employer if you meet certain conditions. For more information on these conditions and the types of travel expenses you may be able to claim, see Can you claim the deduction for travel benefits?

How can you claim the northern residents deductions?

Use Form T2222, Northern Residents Deductions, to calculate the deductions. After you have filled out Form T2222, enter the amount from line 19 of the form on line 255 of your 2016 income tax and benefit return.

Need more information?

To learn more about the northern residents deductions, go to cra.gc.ca/northernresidents, read RC4650, Northern Residents Deductions for 2016, or read the instruction sheet on pages 1 and 2 of Form T2222, Northern Residents Deductions. There is also more information on the Budget 2016 page.

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