Who Qualifies for the Northern Residents Deduction?
You may qualify if:
You live in a prescribed northern zone (Zone A) or a prescribed intermediate zone (Zone B) for at least six consecutive months
You maintain your primary residence in one of these zones
What Can You Claim?
The deduction has two main components:
Residency Amount:
You can claim a daily amount for each day you lived in a prescribed area during the tax year
Zone A allows a higher deduction compared to Zone B
Travel Amount:
You can claim costs for up to two trips per year (per family member) for medical or vacation travel if you received taxable travel benefits from your employer
This includes airfare, mileage, and other travel-related expenses
How to Claim the Deduction
In CloudTax add Form T2222 - Northern Residents Deduction
Why This Matters
The Northern Residents Deduction helps reduce your taxable income, providing financial relief for individuals and families living in remote areas with higher costs of living