*** Transcriber's Note: Please set your voice synthesizer to read most punctuation. When you encounter the caret sign at the end of a line, please enter the applicable information, if necessary. *** Canada Revenue Agency T2222 E (11) (Page 1 of 4) Northern Residents Deductions Do you qualify for the northern residents deductions? To qualify for northern residents deductions, you must have lived, on a permanent basis, in a prescribed northern or intermediate zone for a continuous period of at least six consecutive months. This period can begin or end in the year specified on the attached Form T2222. There are two northern residents deductions: - a residency deduction for having lived in a prescribed zone; and - a deduction for travel benefits you received from employment in a prescribed zone that was included in your income. Publication T4039, Northern Residents Deductions - Places in Prescribed Zones, lists the places in the prescribed northern and prescribed intermediate zones. Deduction limits - If you lived in a prescribed northern zone (Zone A), you can claim the full deductions. If you lived in a prescribed intermediate zone (Zone B), you can claim one-half of the deductions. Deceased individuals - A person who died in the year qualifies if he or she lived in a prescribed zone for six months or more before the date of death. Moving - Your period of residency is not affected if you moved from one place in a prescribed zone directly to another place in a prescribed zone. Absences from a prescribed zone - If you lived in a prescribed zone on a permanent basis, absences from a prescribed zone do not usually affect your period of residency. If you lived in a prescribed zone for work-related reasons (while your principal place of residence was not in a prescribed zone), you may have lived in the prescribed zone on a temporary basis only and therefore may not qualify for the deduction. To determine whether you lived in the prescribed zone on a permanent or a temporary basis, we consider the number of your absences from the prescribed zone and the purpose and length of your absences. If you have not lived in a prescribed zone for continuous periods of at least six consecutive months at the time you file your return, you do not yet qualify. File your return without making the claim. When you qualify, you can ask us to adjust your return. To do so, follow the instructions in the General Income Tax and Benefit Guide under the heading "After you file". Step 1 - List your places of residence Enter Zone A or Zone B in Step 1 of Form T2222 to indicate the zone where you lived. Also enter, your address, your province or territory, and your period of residence. Step 2 - Calculate your residency deduction (lines 1 to 13) Complete the calculation in Step 2 of Form T2222 for the zone(s) you indicated in Step 1. There are two parts to the residency deduction: - Basic residency amount - You can claim the basic amount for the number of days in the year that you lived in a prescribed zone; and - Additional residency amount - You can claim the additional amount for those days you used to calculate your basic amount if you maintained and lived in a dwelling in the prescribed zone during that time and you are the only person claiming the basic amount for living in that same dwelling for that period. A dwelling means a self-contained domestic establishment. Generally, this is a complete and separate living unit with a kitchen, bathroom, sleeping facilities, and its own private access. It includes a house, apartment, mobile home, or other similar place of residence in which a person usually sleeps and eats. It does not include a bunkhouse, dormitory, hotel room, or room in a boarding house. We consider you to have maintained and lived in a dwelling, even if your employer let you live there rent-free and paid all the utility, maintenance, and other costs related to the dwelling. Each person living in the dwelling can claim the basic residency amount as a deduction on their return. However, if more than one person claims the basic residency amount for a particular period and dwelling, no one in that household can claim the additional residency amount for that period and dwelling. You can claim the basic residency amount for living at a special work site in a prescribed zone, when your principal place of residence is not in a prescribed zone. Reduce your residency amount by the amount of the non- taxable board and lodging benefits you received for working in a special work site that are shown in box 31 of your T4 slip, or in box 124 of your T4A slip. For more information about special work sites, see Interpretation Bulletin IT-91, Employment at Special Work Sites or Remote Work Locations. If only one person in a household claims the basic residency amount for a particular period and dwelling, that person can also claim the additional residency amount. To claim the deduction that most benefits your household, you should consider the taxable income of all the members of your household when deciding which one of you will claim the residency deduction. Step 3 - Calculate your deduction for travel benefits (lines 14 to 16) Complete the charts in Step 3 of Form T2222 to list the names and addresses of all individuals who lived with you in your residence during the period(s) indicated in Step 1 for the tax year and to calculate the deduction for travel benefits. The maximum deduction you can claim for each eligible trip is the lowest of the following three amounts: - the taxable travel benefits you received from your employer for the trip (Form T2222: Step 3 - Column 3); - the total travel expenses paid for the trip (Form T2222: Step 3 - Column 4); or - the cost of the lowest return air-fare available at the time of the trip between the airport closest to your residence and the nearest designated city listed in Note 3 on the next page (Form T2222: Step 3 - Column 5). Use the amounts from lines (A) and (B) in the table to complete the calculation at lines 14 to 16. You can claim the deduction for travel benefits for expenses you incurred to travel or the value of travel provided by your employer if you meet all of the following conditions: - you qualify to claim northern residents deductions; (read "Do you qualify for the northern resident deductions?") - you are an employee dealing at arm's length with your employer; and - you must have included in your income (in the same year you have the travel expenses) the taxable travel benefits that you received from your employment in a prescribed zone. If you take a trip that begins and ends in one year and you are reimbursed the following year, you cannot claim the deduction for travel benefits for that trip. T2222 E (11)(Page 2 of 4) You can claim a deduction for travel benefits if you leave on a trip in one year and return the next year. For example, you may leave on a trip in December and come back in January. If you receive non-refundable tickets or travel vouchers, the taxable travel benefit should be included in your T4 or T4A slip for the year the trip begins. Taxable travel benefits include: - travel assistance provided by your employer such as airline tickets or a trip on the company owned airplane; and - a travel allowance or a lump-sum payment you received from your employer for travel expenses you incurred. Any travel expenses, excluding those for employment purposes, which are paid for by your employer, are generally considered taxable benefits. Travel expenses include: air/train/bus fares, vehicle expenses, meals, hotel or motel accommodations, camping fees, and other incidental expenses such as taxis and road/ferry tolls. You can only claim a deduction for travel benefits for a trip that you or your household members (who lived with you at the time of the trip) actually took for vacation, family or medical reasons and that started from a prescribed zone. You can claim a deduction for Other travel (vacation or family reasons) if you have an amount in box 32 of your T4 slip or box 028 of your T4A slip showing any taxable travel benefits you received in the year. You can claim a maximum of two trips per year for Other travel for each member of your household. You can claim a deduction for Medical travel if you have an amount in box 33 of your T4 slip or box 116 of your T4A slip showing any taxable travel benefits you received in the year. The medical services had to be for you or a member of your household and must not have been available where you lived. There is no limit on the number of trips for Medical travel you can claim for each member of your household. If you are claiming a deduction for Medical travel on this form, no one else can claim it as a medical expense on his or her return. You can claim a deduction for travel benefits even if you are not claiming a residency deduction. For example, if your spouse or common-law partner claims both the basic and the additional residency amounts, you can still claim a deduction for any taxable travel benefits you received. You cannot claim a deduction for travel benefits if: - you or any member of your household received or was entitled to receive non-taxable amounts as travel assistance, a travel allowance, or as a reimbursement for travel expenses; or - someone else has already claimed the deduction for travel benefits for this trip on their return. Note 1 If you received a benefit that was not for any particular trip, you have to split it reasonably between the trips you are claiming. The taxable travel benefits you received for Other travel (vacation or family reasons) is your total taxable travel benefits from box 32 of your T4 slip or box 028 of your T4A slip, minus any amount received for Medical travel from box 33 of your T4 slip or box 116 of your T4A slip. Note 2 To calculate meal and vehicle expenses, you may choose the detailed or simplified method. Your total travel expenses equal the total of the value of travel assistance provided by your employer and the travel expenses incurred by you. Ensure that you have included any travel expenses paid by your employer. Detailed Method - You must keep your receipts and claim the actual amount that you spent. Simplified Method - This method uses a flat rate for meals and vehicle expenses (as described below). Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, we may still ask you to provide some documentation to support your claim. - Meals - You can claim a flat rate of $17/meal, to a maximum of $51/day (Canadian or US funds) per person, without receipts. - Vehicle Expenses - You must keep track of the number of kilometres driven during the tax year for the trip. To determine the amount you can claim for vehicle expenses, multiply the number of kilometres by the cents/km rate for the province or territory in which the travel begins. For more information about the detailed or simplified methods including the different rates, go to www.cra.gc.ca/travelcosts, or call 1-800-267-6999. Note 3 The lowest return airfare available at the time of the trip means the lowest return airfare ordinarily available for regularly scheduled commercial flights, excluding promotions or discounts that are not ordinarily available, on the date that the travel began. It also includes any GST/PST/HST and airport taxes. Additional charges, such as flight cancellation insurance, meals, and baggage surcharges are not considered part of the lowest return airfare. The lowest return airfare to be used to complete Column 5 is the cost quoted for a flight from the airport closest to your residence to the nearest designated city (even if you did not actually travel by air or to that city). The nearest designated cities are: Vancouver, BC Calgary, AB Edmonton, AB Saskatoon, SK Winnipeg, MB North Bay, ON Toronto, ON Ottawa, ON Montréal, QC Québec, QC Moncton, NB Halifax, NS St. John's, NL Note 4 In cases of medical travel, if the patient needs an attendant while travelling, the attendant's travel expenses are included as part of the patient's total travel expenses, even if they are in the form of travel assistance your employer provided or actual expenses you incurred. If you or a member of your household was the attendant: In Column 5, include the cost of the attendant's lowest return airfare as part of the patient's expense for airfare. In Column 4, include the cost of the attendant's travel expenses (excluding airfare) as part of the patient's travel expenses. If you or a member of your household was not the attendant: In Column 5, do not include the cost of the attendant's lowest return airfare as part of the patient's expense for airfare. In Column 4, include the cost of the attendant's travel expenses (including airfare) as part of the patient's travel expenses. Step 4 - Calculate your northern residence deductions (lines 17 to 19) Add line 17 (residency deduction) and line 18 (deduction for travel benefits) on Form T2222. Enter the amount from line 19 (of form T2222) on line 255 of your return. T2222 E (11)(Page 3 of 4) Canada Revenue Agency Tax year 20 ^ Northern Residents Deductions Attach a copy of this form to your return. Read the attached information sheet for more information on claiming these deductions. Use this form to calculate your northern residents deductions if you lived in a prescribed northern zone (Zone A) or in a prescribed intermediate zone (Zone B) for a continuous period of at least six consecutive months. The list of prescribed zones are available in Publication T4039, Northern Residents Deductions - Places in Prescribed Zones. To get a copy, go to www.cra.gc.ca/forms or call 1-800-959-2221. Do not attach your supporting documents to your return. However, keep them in case we ask to see them. Supporting documents can include travel receipts, rent receipts, statements from your landlord, municipal taxes bill, and utility bills. Step 1 - List your places of residence (Attach a separate sheet of paper if you need more space.) *** Transcriber's note: There is space for two entries. *** Enter Zone A or Zone B ^ Enter your street address or a description of the location of the property such as a lot and plan number. This may be different from your mailing address. ^ Enter the Province or Territory ^ Period of residence: Enter the date that you started to live in a prescribed zone for a continuous period of at least six consecutive months. This period can begin or end in the tax year you stated at the top of this form. From: Year/Month/Day ^ To: Year/Month/Day ^ Step 2 - Calculate your residency deduction (for having lived in a prescribed zone for a continuous period of at least six consecutive months) Zone A - Residents of prescribed northern zones Basic residency amount Line 1: Enter the number of days you lived in a prescribed northern zone between January 1 and December 31 in the tax year you stated at the top of this form. ^ Multiplied by $8.25 = ^ Additional residency amount Line 2: Enter the number of days you qualify for the additional residency amount between January 1 and December 31 in the tax year you stated at the top of this form. ^ Multiplied by $8.25 = ^ Line 3 and line 6749: Add lines 1 and 2. = ^ Line 4 and line 6757: Enter the amount from box 31 of your T4 slip, or from box 124 of your T4A slip, that represents the non-taxable benefits for board and lodging at a special work site. ^ Line 5: Line 3 minus line 4 (if negative, enter "0") = ^ Zone B - Residents of prescribed intermediate zones Basic residency amount Line 6: Enter the number of days you lived in an intermediate zone between January 1 and December 31 in the tax year you stated at the top of this form. ^ Multiplied by $4.125 = ^ Additional residency amount Line 7: Enter the number of days you qualify for the additional residency amount between January 1 and December 31 in the tax year you stated at the top of this form. ^ Multiplied by $4.125 = ^ Line 8 and line 6752: Add lines 6 and 7. = ^ Line 9 and line 6759: Enter the amount from box 31 of your T4 slip, or from box 124 of your T4A slip, that represents the non-taxable benefits for board and lodging at a special work site. ^ Line 10: Line 8 minus line 9 (if negative, enter "0") = ^ Line 11: Add lines 5 and 10. = ^ Line 12: Enter your net income from line 236 of your return. ^ Multiplied by 20% = ^ Line 13: Enter the amount from line 11 or line 12, whichever is less. Residency deduction ^ Go to Step 3 on the next page. T2222 E (11) (Page 4 of 4) Step 3 - Calculate your deduction for travel benefits (Attach a separate sheet of paper if you need more space.) See Step 3 on the attached information sheet to determine if you can claim this deduction. If yes, complete the charts below to provide the names and addresses of all individuals who lived in your residence during the period(s) indicated in Step 1 for the tax year and to calculate your deduction for travel benefits. Name: ^ Address: ^ Name: ^ Address: ^ Address: ^ Name: ^ INSTRUCTIONS *** Transcriber's Note: In print, the following table is set-up as 7 columns. The format has been changed to a narrative set-up. Please read as: Other Travel (Trips 1 and 2), followed by Medical Travel (Trips 1 and 2). Column 6: Zone A Prescribed northern zone; Column 7: Zone B Prescribed intermediate zone. *** OTHER TRAVEL TRIP 1 Column 1: Enter the name of the person who took the trip. (See Step 3 on the information sheet.) ^ Column 2: Enter the purpose of trip. Other travel (vacation, family reasons) or Medical travel ^ Column 3: Enter the amount of taxable travel benefits. Other travel: T4 slip - box 32 and T4A slip - box 028 Medical travel: T4 slip - box 33 and T4A slip - box 116 (See Note 1 on the information sheet.) ^ Column 4: Enter the amount of travel expenses for each trip taken. (See Notes 2 and 4 on the information sheet.) ^ Column 5: Enter the quote for the lowest return airfare. (See Notes 3 and 4 on the information sheet.) ^ Enter the lowest of the amounts from either Column 3, 4, or 5 in the appropriate column below for the prescribed zone(s) where you resided. Column 6: Zone A Prescribed northern zones ^ Column 7: Zone B Prescribed intermediate ^ (A) Total (Zone A Prescribed northern zones) ^ (B) Total (Zone B Prescribed intermediate) ^ TRIP 2 Column 1: Enter the name of the person who took the trip. (See Step 3 on the information sheet.) ^ Column 2: Enter the purpose of trip. Other travel (vacation, family reasons) or Medical travel ^ Column 3: Enter the amount of taxable travel benefits. Other travel: T4 slip - box 32 and T4A slip - box 028 Medical travel: T4 slip - box 33 and T4A slip - box 116 (See Note 1 on the information sheet.) ^ Column 4: Enter the amount of travel expenses for each trip taken. (See Notes 2 and 4 on the information sheet.) ^ Column 5: Enter the quote for the lowest return airfare. (See Notes 3 and 4 on the information sheet.) ^ Enter the lowest of the amounts from either Column 3, 4, or 5 in the appropriate column below for the prescribed zone(s) where you resided. Column 6: Zone A Prescribed northern zones ^ Column 7: Zone B Prescribed intermediate ^ (A) Total (Zone A Prescribed northern zones) ^ (B) Total (Zone B Prescribed intermediate) ^ MEDICAL TRAVEL TRIP 1 Column 1: Enter the name of the person who took the trip. (See Step 3 on the information sheet.) ^ Column 2: Enter the purpose of trip. Other travel (vacation, family reasons) or Medical travel ^ Column 3: Enter the amount of taxable travel benefits. Other travel: T4 slip - box 32 and T4A slip - box 028 Medical travel: T4 slip - box 33 and T4A slip - box 116 (See Note 1 on the information sheet.) ^ Column 4: Enter the amount of travel expenses for each trip taken. (See Notes 2 and 4 on the information sheet.) ^ Column 5: Enter the quote for the lowest return airfare. (See Notes 3 and 4 on the information sheet.) ^ Enter the lowest of the amounts from either Column 3, 4, or 5 in the appropriate column below for the prescribed zone(s) where you resided. Column 6: Zone A Prescribed northern zones ^ Column 7: Zone B Prescribed intermediate ^ (A) Total (Zone A Prescribed northern zones) ^ (B) Total (Zone B Prescribed intermediate) ^ TRIP 2 Column 1: Enter the name of the person who took the trip. (See Step 3 on the information sheet.) ^ Column 2: Enter the purpose of trip. Other travel (vacation, family reasons) or Medical travel ^ Column 3: Enter the amount of taxable travel benefits. Other travel: T4 slip - box 32 and T4A slip - box 028 Medical travel: T4 slip - box 33 and T4A slip - box 116 (See Note 1 on the information sheet.) ^ Column 4: Enter the amount of travel expenses for each trip taken. (See Notes 2 and 4 on the information sheet.) ^ Column 5: Enter the quote for the lowest return airfare. (See Notes 3 and 4 on the information sheet.) ^ Enter the lowest of the amounts from either Column 3, 4, or 5 in the appropriate column below for the prescribed zone(s) where you resided. Column 6: Zone A Prescribed northern zones ^ Column 7: Zone B Prescribed intermediate ^ (A) Total (Zone A Prescribed northern zones) ^ (B) Total (Zone B Prescribed intermediate) ^ Line 14 and line 6754: Enter the amount from line (A) above.^ Line 15 Enter the amount from line (B) above. Line 6756: ^ Multiplied by 50% = ^ Line 16: Add lines 14 and 15. Deduction for travel benefits = ^ Step 4 - Calculate your northern residents deductions Line 17: Enter the amount from line 13 in Step 2. Residency deduction ^ Line 18: Enter the amount from line 16 in Step 3. Deduction for travel benefits ^ Line 19: Add lines 17 and 18.Northern residents deductions ^ Enter the amount from line 19 on line 255 of your return. Privacy Act, Personal Information Bank number CRA PPU 005