Northern Residents Deduction

If you lived in a prescribed northern or intermediate zone for a period of at least six consecutive months beginning or ending in a taxation year, you may claim the Northern Residents Deduction on Line 255 by filing Form T2222 Northern Residents Deductions.

These zones are published in CRA’s website – click here to view.

Two types of deductions are available: a residency deduction and a travel deduction, and your software will usually calculate these amounts for you. 

This claim of $8.25 a day (double this if you are the only person claiming the residency amount for your residence) may also be made on the final return of a deceased taxpayer if the deceased lived in a prescribed zone for six months prior to death.

There is no requirement for income reporting to make this claim; however, because it’s a deduction, it will only benefit those with taxable income. It cannot be carried back or forward if you don’t use it this year.