So I know there are many of you who are living in the Zone A of Canada and are eligible to northern living deductions. All though I do not currently live northern, as I was working my way through my 09 taxes, I read up on form T2222 (nrt living form) as I am most likely going to be making the move sometime soon.
It is pretty complicated, even more so than the cars. I understand the residency part for the most part, but I am kind of thrown off by the trips. Do they seriously give you credit for travelling up there, or back down "south", or is that only if it is for "work". If I lived up in lets say Whitehorse, and flew down to visit, I want to assume that would not count? It also goes into explaining allowances for meals, and travel (cents per kilometer etc).
Anyway. What I am really just asking is, is what do you get to claim as someone who is living up there working. Not traveling up there to work, but living up there.
Northern Living and Income Tax
Moderators: sky's the limit, sepia, Sulako, lilfssister, North Shore
Re: Northern Living and Income Tax
http://www.cra-arc.gc.ca/tx/ndvdls/tpcs ... u-eng.html
You can claim a deduction for medical travel if you have an amount in box 33 of your T4 slip or box 28 of your T4A slip showing any taxable travel benefits you received in the year.
There is no limit on the number of trips for medical travel by each family member. The medical services had to be for you or a member of your household and must not have been available where you lived. If you are claiming a medical travel deduction on Form T2222, Northern Residents Deductions, no one else can include it as a medical expense on his or her income tax return.
Note
In cases of medical travel, if the patient needs an attendant while travelling, the attendant's travel costs are included as part of the patient's total travel expenses, regardless if they are in the form of travel assistance your employer provided or actual expenses you incurred.
You can claim a deduction for travel 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.
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.
You cannot claim a deduction for travel expenses 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 those expenses; or
* someone else has already claimed the deduction for travel expenses for this trip on their tax return.
If you received a benefit that was not for any particular trip, you have to split it reasonably between the trips you are claiming. To claim the deduction for travel, you must receive the taxable travel benefits in the same year you have the travel expenses. For example, if you take a trip that begins and ends in one year and you are reimbursed the following year, you cannot claim the travel deduction for that trip.
However, you can claim a deduction for travel 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.
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.
Note
To claim a deduction for travel, you must have included in your income taxable travel benefits (in the same year you have the travel expenses) from your employment in a prescribed zone. You can only claim a deduction for travel for a trip that you or your household members (who lived with you at the time of the trip) actually took and that started from a prescribed zone.
You can claim a deduction for Other Travel if you have an amount in box 32 of your T4 slip or box 28 of your T4A slip showing any taxable travel benefits you received in the year. Other Travel means travel for vacation or family reasons (maximum of two trips per year by each household member).
Note
To calculate meal and vehicle expenses only, 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 costs paid by your employer.
Detailed Method - You must keep your receipts and claim the actual amount that you spent.
Simplified Method - You do not need to keep receipts.
* 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 taxation 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.
You can claim a deduction for medical travel if you have an amount in box 33 of your T4 slip or box 28 of your T4A slip showing any taxable travel benefits you received in the year.
There is no limit on the number of trips for medical travel by each family member. The medical services had to be for you or a member of your household and must not have been available where you lived. If you are claiming a medical travel deduction on Form T2222, Northern Residents Deductions, no one else can include it as a medical expense on his or her income tax return.
Note
In cases of medical travel, if the patient needs an attendant while travelling, the attendant's travel costs are included as part of the patient's total travel expenses, regardless if they are in the form of travel assistance your employer provided or actual expenses you incurred.
You can claim a deduction for travel 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.
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.
You cannot claim a deduction for travel expenses 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 those expenses; or
* someone else has already claimed the deduction for travel expenses for this trip on their tax return.
If you received a benefit that was not for any particular trip, you have to split it reasonably between the trips you are claiming. To claim the deduction for travel, you must receive the taxable travel benefits in the same year you have the travel expenses. For example, if you take a trip that begins and ends in one year and you are reimbursed the following year, you cannot claim the travel deduction for that trip.
However, you can claim a deduction for travel 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.
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.
Note
To claim a deduction for travel, you must have included in your income taxable travel benefits (in the same year you have the travel expenses) from your employment in a prescribed zone. You can only claim a deduction for travel for a trip that you or your household members (who lived with you at the time of the trip) actually took and that started from a prescribed zone.
You can claim a deduction for Other Travel if you have an amount in box 32 of your T4 slip or box 28 of your T4A slip showing any taxable travel benefits you received in the year. Other Travel means travel for vacation or family reasons (maximum of two trips per year by each household member).
Note
To calculate meal and vehicle expenses only, 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 costs paid by your employer.
Detailed Method - You must keep your receipts and claim the actual amount that you spent.
Simplified Method - You do not need to keep receipts.
* 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 taxation 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.
Re: Northern Living and Income Tax
What governments levy the income tax of California, does the tax apply to individuals and corporations? how is the tax linked to federal income taxes, are the rates graduated, and is the tax indexed?
