Line 255 - Residency deduction
There are two parts to the residency deduction:
- Basic residency amount - You can claim this amount for the number of days in the year that you lived in a prescribed zone; and
- Additional residency amount - You can claim this amount for those days you used to calculate your basic residency 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 residency 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.
If your principal place of residence is not in a prescribed zone, you may still qualify for all or a portion of the basic residency amount for living at a special work site provided that the site is located in a prescribed zone and you resided at the site for at least six consecutive months. 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, go to 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.
Forms and publications
- General Income Tax and Benefit Package - Guide, Return, and Schedules
- Form T2222, Northern Residents Deductions
- Interpretation Bulletin IT-91, Employment at Special Work Sites or Remote Work Locations
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