Northern residents - Travel expenses -T2222
Please note, that since January 2021, the governments
have made changes where the employer no longer grants a taxable
benefit. You can claim a lump sum of up to $1,2000 in the Northern
zone and $600 in the Intermediate zone for the taxation year for
each family member.
You live in a northern area as prescribed by CRA regulations,
and your employer paid you travel benefits. These benefits appear
in Boxes 32 or 33 (medical expenses) of your T4 slip. For Quebec
residents, they are reported in Box K of RL- 1.
To qualify for Northern resident's deductions, you must have
lived on a permanent basis, in a northern or intermediate
zone for a continuous period of at least six (6)
consecutive months.
If only one person in a household claims the basic
residency amount, this person may also claim the additional
amount for the residence. Calculate the taxable income of each
household member to determine which of you would benefit
most from the residency deduction.
You can only claim 2 trips per year for reasons of holiday or
family. As for the number of trips for medical expenses, there is
no limit.
The amount you can claim is based on the taxable allowance
you received, which is entered in box 32 or 33 of the T4
slip. If you have not received a taxable travel
allowance, a lump sum of $1,200 in the Northern zone and $600 in
the Intermediate zone is granted for each member of your
family.
In the "Deduction for travel benefits'' section. You must
enter $0.00 on the line "1-Employee benefits with respect to
northern travel".
If you have made trips for medical reasons and you have not
received a taxable benefit from your employer, you can claim the
basic amount for these expenses in the section ''Medical,
disability, caregiver".
For rules regarding travel, please see step 3 of Form T2222.
For more information, please visit the following links:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/northern-residents.html
Revenu Quebec:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/tp-350-1-v/
To claim your expenses, for which you have received a
taxable benefit, please follow the steps below:
1 - On the "Left side menu of the Interview tab", select
"Other deductions and credits".
2 - On the screen on the right, choose "Federal line 25500 -
T2222 - Northern residents' deduction".
3 - On the page that appears entitled "T2222 - Northern
residents' deduction", enter the required information.
4 - On the "Residency deduction" section, enter the
relevant information.
5 - The non-taxable housing benefit received from your employer
appears in Box 31 of the T4 slip and this amount is not
included in Box 14.
6 - At the "Deduction for travel benefits" section, you
must enter all relevant travel information for which you have
received a taxable benefit in Box 32 or 33 of the T4 slip.
7 - If you have received a taxable benefit from the employer,
enter the amount on the line "Employee benefits with respect to
northern travel" enter the amount and fill in the appropriate
boxes for the expenses of the trip. Please note that you must enter
the "Lowest return airfare for the northern area travel",
even if you have not used an airplane to travel.
8 - If you made several trips for which you received an
advantage choose the line, "+ Add another", which is
the bottom right of the page.
The program will generate Form T2222 for the
Federal return and for residents of Québec form TP-
350.1 will be produced.
The deduction will be entered on line 25500 of the
Federal return and on line 236 of the Quebec return.
ID: 20220104100832DE.xml
Webpage: KPA310-20220104100832DE.htm
