Do you live in northern Canada? Find out about northern residents deductions!
CRA SOURCE ARTICLE
If you permanently lived in a prescribed northern zone (Zone A) or a prescribed intermediate zone (Zone B) for a continuous period of at least six consecutive months beginning or ending in the tax year, you may be eligible to claim the northern residents deductions on your income tax and benefit return. If you are eligible, these deductions will reduce the amount of income you pay tax on.
What are the northern residents deductions you can claim on your 2022 income tax and benefit return?
There are two northern residents deductions which eligible residents may claim:
a residency deduction (for living costs) that is based on how many days you lived in a prescribed zone during the tax year; and
a travel deduction for a trip for medical and other reasons (such as vacation) that started from a prescribed zone and was taken by you or an eligible family member.
Eligible individuals living in a prescribed northern zone can claim the full amount of these deductions, and those living in a prescribed intermediate zone can claim 50% of these deductions.
Simplified northern residents travel deduction
The Canada Revenue Agency (CRA) launched the simplified northern residents travel deduction, a pilot project to make it easier for northern residents to determine the lowest return airfare, one of the three amounts required to claim the travel deduction at tax time. Lowest return airfare tables are available on canada.ca/lowest-return-airfare, and they identify the lowest return airfare amount found from airports with regularly scheduled commercial flights to a designated city. The airfare tables contain more than 135 airports, almost all of which are located in the prescribed zones.
To learn about the simplified northern residents travel deduction, we recommend that you watch a recording of our March 7, 2023, webinar. This webinar discusses the steps about how to claim the travel deduction using the new tables.
We’d like to invite you to share your comments and experience with the simplified travel deduction to help us improve our information and services. It should only take a few minutes to complete the short survey.
How to claim the northern residents deductions
If eligible, you can calculate your claim for the northern residents deductions using Form T2222, Northern Residents Deductions for 2022. If you live in a remote area located in the province of Québec, you can also claim related provincial deductions with form TP-350.1-V.
Filing and payment deadlines
We encourage Canadians to file their taxes as soon as possible, not only this year but every year. The deadline for most Canadians to file their income tax and benefit return is April 30, 2023. Since this deadline falls on a Sunday, your return will be considered filed on time if the CRA receives it, or it is postmarked, on or before May 1, 2023.
If you or your spouse or common-law partner are self-employed, you have until June 15, 2023, to file your tax return. Filing your return before these respective deadlines will allow you to avoid interruptions to any benefit or credit payments you may be entitled to.
If you owe money, your payment is due on April 30, 2023, even if you or your spouse or common-law partner are self-employed. Since this deadline falls on a Sunday, your payment will be considered on time if the CRA receives it, or a Canadian financial institution processes it, on or before May 1, 2023.
Resources to help you and your family
Several benefits and credits are available to help you and your family. You can find more information on benefit programs, eligibility, application instructions, and payment dates on our Tax credits and benefits for individuals page.
It’s important that you complete and file your income tax and benefit return every year, even if you had no income, as you may be eligible to receive benefit and credit payments. You can register for direct deposit and file online to get any refund you may be eligible for faster. If you choose to file online, there are a variety of NETFILE-certified software products to meet your needs, some of which are free.
Get free tax help
If you have a modest income and a simple tax situation, volunteers at a free tax clinic may be able to do your taxes for you. Free tax clinics are available in person and virtually. To find out if you’re eligible, and to find a tax clinic, go to our Free tax clinics page.
If you’re a small business owner or a self-employed individual, our Liaison Officer service can help you understand your business tax obligations. A visit from a Liaison Officer is 100% confidential. The information you choose to discuss with a Liaison Officer will not be shared with other areas of the CRA, or anyone else. You can request free tax help by using our online request form. Also, employees operating from the Northern Service Centres can assist you by scheduling either virtual or in-person visits with a Liaison Officer.
Northern Service Centres
You may also be able to get help from the CRA’s Northern Service Centres. If you have tax questions related to living in the North, and your phone number starts with an 867 area code, you can call 1-866-426-1527 and talk with a CRA officer who can help:
answer your questions about benefits and credits
help guide you through the CRA’s various tools and digital services
help you respond to letters from the CRA
answer your small business tax-related questions
provide recommendations on how you can strengthen your bookkeeping systems
Other information you may find helpful
Did you know that you can find most of the information you need online? We encourage you to find answers to your tax-filing questions through our digital services before calling us, as it will save you time. You can check out these resources:
Benefit payment dates – Find out when you will receive your benefit payments.
Tax tips – Find information that could help you with your tax questions.
Ways to do your taxes – View several ways to do your taxes, including options that are free!
Questions and answers about filing your taxes – Find answers to common questions Canadians ask us at tax time.
Charlie the Chatbot – This service can be found on the CRA homepage and many of our other pages on Canada.ca to provide you with quick answers to your tax-filing questions.
You can learn more about Northern Resident Deductions by visiting the links above or by scheduling a free consultation with us.