Tax Break for Northern Residents

If you’ve lived in a prescribed northern or intermediate zone for a period of at least six consecutive months beginning or ending in the tax year, you may be able to claim the Northern Residents Deduction on Line 255.  Not sure if you qualify? 

The zones are published in CRA’s booklet, T4039.

Two types of deductions are available. One, a residency deduction of 20% of your income and up to $8.25 for each day you resided in the zone. This doubles if you maintained and resided in a self-contained home and no one else made the claim. Second, you will also qualify for a travel deduction for up to two trips per year plus any trips taken to obtain medical services not locally available.