Seeking clarification of allowable deductions for Northern Residents travel.

[Jpenney74]

Hello,

I am hoping someone in the community can help me with something.  

• 2023 tax year
• On my T4 I have an amount indicated in Box 32 for travel in a prescribed zone.
• I do not have an amount indicated in box 33 for medical travel in a prescribed zone.
• I claimed 2 "other" trips for each family member.
• I claimed 3 medical trips for my wife.

CRA reviewed my return and deemed that the claim for medical trips was to be disallowed due to no amount indicated in Box 33.  I have previously claimed medical trips with no issue based on the amount that was included in Box 32.

Did the rules on deductions for Norther Residents change recently?  

[TurboTaxSusan]

No, you don’t need an amount in Box 33 on your T4. You can use a portion of the individual's $1,200 standard amount.

On the T2222 - Northern Residents Deductions form, Step B, Chart B uses the lowest of amount from column 3, 4, or 5 for each person/trip to determine the amounts used in the total. Column 3 needs to be either your travel benefit (box 33 if it’s for a medical trip), or the portion of the individual's $1,200 standard amount for the trip. So, if you don’t have anything in Box 33 on your T4, then you need to use a portion of your $1,200 standard amount. If you have already used up all of the $1,200 on other trips, then column 3 will be zero, which will be chosen for the total.