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Claiming the additional residency amount

Pre-test question

Select True or False

The individual must have lived permanently, in a prescribed zone (Zone A or Zone B), for at least 12 consecutive months, beginning or ending in the tax year for which you are preparing the tax return to be eligible to claim northern residents deductions.

  • True
  • False

Instructions

  1. Open the tax software
  2. Review the Background information and Required slips (tax slips, receipts, etc.)
  3. Provide all required information for the appropriate sections of the tax software
  4. Once completed, compare your results with the solution provided
  5. Afterwards, refer to the Takeaway points

Background information

Situation

Pierre and Bora are employees of Lumber Inc. in a Zone A – Prescribed Northern Zone. They also live in Zone A and are eligible to claim the northern residents deduction for the full year. Although Pierre and Bora are both eligible to claim the basic residency amount, they have decided it is more beneficial for Pierre to claim both the basic residency amount and the additional residency amount because Bora works part-time. Pierre also received Advanced Canada workers benefit payments.

Identification information

Identification information
Category Information
Name Pierre Jack
Social insurance number (SIN) 000 000 000
Address 123 Main Street
City, Province  X0X 0X0
Date of birth (DOB) May 5, 1988
Marital status

Married to:
Bora Jack on August 2, 2018
SIN: 000 000 000
DOB: July 7, 1988

Required slips

T4 – Statement of Remuneration Paid (Pierre) (Lumber Inc.)

T4 – Statement of Remuneration Paid (Pierre) (Lumber Inc.)
Text version of the above image

T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Lumber Inc.
Employee’s name and address:
Last name: Jack
First name: Pierre
123 Main Street
City, Province  X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 28,251.00
Box 16: Employee’s CPP contributions – see over: 1,474.72
Box 18: Employee’s EI premiums: 469.56
Box 22: Income tax deducted: 1,380.66
Box 24: EI insurable earnings: 28,251.00
Box 26: CPP/QPP pensionable earnings: 28,251.00
Box 45: Employer-offered dental benefits: 2

T4 – Statement of Remuneration Paid (Bora) (Lumber Inc.)

T4 – Statement of Remuneration Paid (Bora) (Lumber Inc.)
Text version of the above image

T4 – Statement of Remuneration Paid
Protected B
Employer’s name: Lumber Inc.
Employee’s name and address:
Last name: Jack
First name: Bora
123 Main Street
City, Province  X0X 0X0
Box 12: Social insurance number: 000 000 000
Box 14: Employment income: 15,000.00
Box 16: Employee’s CPP contributions – see over: 787.00
Box 18: Employee’s EI premiums: 248.56
Box 22: Income tax deducted: 806.00
Box 24: EI insurable earnings: 15,000.00
Box 26: CPP/QPP pensionable earnings: 15,000.00
Box 45: Employer-offered dental benefits: 1

RC210 – Advanced Canada workers benefit (ACWB) statement

Advanced Canada workers benefit (ACWB statement)
Text version of the above image

RC210 – Advanced Canada workers benefit (ACWB) statement
Issued by: Canada Revenue Agency
Jack, Pierre 
123 Main Street
City, Province  X0X 0X0
Social insurance number: 000 000 000
Box 10: Total Basic Advanced Canada workers benefit: 759.00

Review your results

Solution to Claiming the additional residency amount.

Takeaway points

Steps to follow

  1. Review their background information and required slips
  2. Since Pierre is claiming both the basic residency amount and the additional residency amount, make sure to use Pierre’s profile to claim the Northern residents deductions
  3. In Interview setup, tick the boxes next to Other deductions and credits (including school supply, digital news subscription and home buyers’ amount) in the Other topics section and Employment income and employment insurance benefits (T4, T4E/RL-6) in the Employment and other benefits section
  4. Click T4 and employment income in the left-side menu, then click the + sign next to T4 income (earned in any province except Quebec) and enter the required information
  5. Click Other information slips in the left-side menu, then click the + sign next to RC210 – Canada workers benefit advance payments statement [Federal line 41500] to enter the information from the tax slip
  6. Click Other deductions and credits in the left-side menu, then click the + sign next to Federal line 25500 – T2222 – Northern residents deduction
  7. Select Zone A (Resident of prescribed northern area) from the Area for which you are claiming the Northern residents deduction drop-down menu
  8. Enter the start and end dates of the northern residence into the Basic residency amount, beginning (dd-mm-yyyy) and Basic residency amount, end (dd-mm-yyyy) fields and enter 365 into the Number of days to consider for the additional residency amount field

Since Pierre is claiming the additional residency amount, Bora does not claim the basic residency amount. UFile automatically calculates the amount of the deduction and claims it on line 25500 of Pierre’s tax return.

For more information, refer to UFile instructions.

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