Revenue Canada Northern Residents Zones

There are two parts to this deduction the basic amount is available to all residents who have lived in prescribed zones for a six month period either beginning or ending in the calendar year but there is an ability to increase this deduction if the employer provides assistance with travel to certain designated cities in canada.

Revenue canada northern residents zones. Line 25500 was line 255 before tax year 2019. Northern residents deductions places in prescribed zones déductions pour les habitants de régions éloignées endroits situés dans les zones visées par règlement zone a prescribed northern zones zones nordiques visées par règlement place names followed by numbers are indian reserves. You can deduct half the potential amount. Residents of certain regions of northern canada can claim the northern residents deduction nrd on their personal income tax and benefit return this deduction reduces their taxable income on line 26000 which lowers their tax liability and could increase a refund or lower a balance due the deduction includes a basic amount an additional amount and an amount for travel expenses.

When you consider the fact that the island has no permanent residents it s interesting that the cra bothers including it at all. According to canada revenue agency to qualify for northern resident deductions you must have lived on a permanent basis in a prescribed northern or intermediate zone for a continuous period of at least six consecutive months there may be a limit to the deduction you can claim. The cra has set up two different zones. If you think you may live in a northern zone or an intermediate zone check out the cra s publication t4039 northern residents deductions places in prescribed zones.

If you live in a remote area located in the province of québec you can also claim the related provincial deductions on your québec tax return by completing form tp 350 1 v. Line 25500 was line 255 before tax year 2019. Northern prescribed zone as defined under the canada income tax regulations 7303 1 1 for the purposes of the northern residents deduction. If you lived in the northern regions of canada for at least 6 consecutive months you might be able to claim certain deductions on your federal tax return using form t2222.

The northern resident deduction lets you claim each day you live in a northern zone it isn t just based on your location as of december 31st like most other tax things so this would allow temporary researchers to claim the deduction on their taxes but it s.