General Comments:
On February 12, 2025, CRA Issued a Tax Tip entitled Tax Benefits for Northern Residents which applies to 2024 personal tax returns.
This deduction from Total Income is calculated on Form T2222 and claimed on Line 25500.
Below is a summary of the two major sections in this Tax Tip.
Tax Benefits for Northern Residents (Line 25500):
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- If you lived in a northern or remote area (a prescribed zone) for six months or more in 2024, you may qualify for the northern residents deductions. There are two available deductions – Residency (Step 2 of T2222) and Travel (Step 3 of T2222).
- Residency deduction for 2024:
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- Basic Residency Amount: $11/day for Zone A and $5.50/day for Zone B; claimed by each person in the household.
- Additional Residency Amount: an additional $11/day for Zone A and $5.50/day for Zone B; claimed by the person who maintained and lived in the dwelling, but only if no one else claims the basic residency amount in the same dwelling for that period.
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- Travel Deduction for 2024:
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- Travel deduction for medical (no trips maximum per person) or personal trips (2 trips maximum per person) originating from a prescribed zone, using various modes of transportation; claimed by each family member.
- Must provide receipts or records for total travel expenses if requested by CRA; lowest return airfare (LRA) must be used.
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Key Dates for the 2024 Tax Season:
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- February 24, 2025 – First day to start filing 2024 T1s online.
- April 30, 2025 – Deadline for online filing of 2024 T1s; also payment deadline to avoid late-filing penalties and interest.
- June 16, 2025 – Monday filing deadline for the taxpayer and their spouse/common law partner, if at least one was self-employed in 2024. Extended by one day due to June 15 falling on a Sunday. Tax payable is still due by April 30, 2025.
Links to all CRA Tax Tips for 2024 and 2025 are available in our Research Section.