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New Member
posted Mar 7, 2022 9:43:32 AM

Why does our $1200 standard travel deduction amount for northern residents not reflect in our tax refund? Is this not a tax deduction?

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1 Replies
Level 3
Mar 8, 2022 10:25:02 AM

In order to see that the credit is applied please follow the steps below.

  • Go to the menu on the left hand side in your return
  • Go to the drop down arrow where you see your Refund or Due  
  • Click on View Detailed Summary and scroll down to Taxable Income where you will see line 25500 Northern Residents Deductions.
  • Here you will see the calculated allowed deduction.

A lot of taxpayers aren’t aware of this deduction, and there are two deductions you can claim: one for residency for living in a prescribed zone, and a second deduction for travel benefits received from your employer. Travel benefits refer to those included in your paycheque and shown on your tax slip.

To claim the deduction, your employer must pay your regular annual earnings, plus a travel benefit. CRA doesn’t allow you to claim the deduction if travel benefits are included in your salary. Your employer can reimburse you after a trip or based on a previously agreed-upon amount.

More about  How to Calculate Travel Benefits for the Northern Residents Deduction.

 

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