After the Super Bowl, the next most anticipated event coming up in Canada is… no, not the Oscars, but tax season! Not the most exciting time of the year unless you work for Canada Revenue or an accounting firm, but there might be relief depending on where you lived in 2023.
If you lived in northern or remote areas of the country for six months or more last year, you can claim Northern Residents Deductions, which “recognize the unique challenges northern residents face, such as higher living costs and limited access to services.” This includes residency deductions and travel deductions.
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If you qualify, the residency deduction allows you to claim up to $11 a day if you lived in a prescribed northern zone (Zone A) and $5.50 a day if you lived in a prescribed intermediate zone (Zone B). There are additional amounts you may be able to claim as well. You can find out if you’re eligible for the residency deduction as well as additional residency tax breaks on canada.ca.
The travel deduction must be for “medical or personal trips originating from a prescribed zone, using various modes of transportation.” Two personal trips can be claimed by each eligible family member per year. There is no limit on the number of claims for medical trips. For more details on the travel deduction and to see if you’re eligible to claim it, visit canada.ca.
To learn more about Northern Residents Deductions, visit canada.ca/taxes-northern-residents.
As of February 19, you can officially file your 2023 tax return online. The deadline for most Canadians to file a 2023 tax return is April 30, 2024.
Photo by Tara Winstead
