Tax breaks for Canadians in northern zones: CRA offers deductions for daily living, travel expenses

Canadians meeting the criteria can claim both residency and travel deductions. For residency, eligible individuals can claim up to $11 per day for those in a northern zone or up to $5.50 per day for those in an intermediate zone.

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Prerit Chauhan
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PTC Web Desk: Residents of northern or remote areas in Canada have the opportunity to benefit from two tax breaks covering their daily living expenses and travel costs, according to the Canada Revenue Agency (CRA). Individuals residing in prescribed northern or intermediate zones qualify for these deductions, acknowledging their higher cost of living and limited access to services. The CRA specifies that eligibility can be confirmed on the government's website.

Canadians meeting the criteria can claim both residency and travel deductions. For residency, eligible individuals can claim up to $11 per day for those in a northern zone or up to $5.50 per day for those in an intermediate zone. The government's website facilitates determining eligibility and calculating the residency deduction. Moreover, those eligible for the residency deduction may receive additional benefits if they are the sole claimant in the household responsible for "maintaining the dwelling."

Residents of northern or intermediate zones are also entitled to claim a travel deduction for medical trips and a limited number of personal trips originating from their zone. While only two personal trips per individual can be claimed in a tax year, there is no restriction on the number of claims for medical trips, as stated by the CRA.

To assert the travel deduction, Canadians must provide receipts or records indicating the total trip cost and present the lowest return airfare available. The CRA clarifies that the lowest return airfare refers to "the cost of the cheapest round-trip airfare available when your travel began, between the airport closest to your residence and the nearest designated city." Additional information, including designated cities and instructions on finding the lowest return airfare, is accessible on the government's website.

Canada tax breaks Northern zone residency deduction CRA deductions
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