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Instructions

1. Open the tax software
2. Review 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.

Identification information

Identification information

Name	Pierre Jack
Social insurance number (SIN)	000 000 000
Address	123 Main Street City, Province  X0X 0X0
Date of birth (DOB)	May 05, 1988
Marital status	Married to: Bora Jack on August 02, 2018 SIN: 000 000 000 DOB: July 07, 1988

Required slips

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

Text version of the image above

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 – line 10100: 43,251.00
Box 16: Employee’s CPP contributions – line 30800: 1,997.75
Box 18: Employee’s EI premiums – line 31200: 625.66
Box 22: Income tax deducted – line 43700: 6,205.00
Box 24: EI insurable earnings: 43,251.00
Box 26: CPP/QPP pensionable earnings: 43,251.00

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

Text version of the image above

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 – line 10100: 15,000.00
Box 16: Employee’s CPP contributions – line 30800: 555.00
Box 18: Employee’s EI premiums – line 31200: 233.00
Box 22: Income tax deducted – line 43700: 2500.00
Box 24: EI insurable earnings: 15,000.00
Box 26: CPP/QPP pensionable earnings: 15,000.00

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 box next to Other deductions and credits (including school supply and home buyers’ amount) in the Other topics section
4. Click Other deductions and credits in the left-side menu, then click the + sign next to Federal line 25500 – T2222 – Northern residents deduction
5. Select Zone A (Resident of prescribed northern area) from the Area for which you are claiming the Northern residents deduction drop-down menu
6. Enter the start and end dates of the northern residence into the Basic residency amount, beginning and Basic residency amount, end 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.

For more information, refer to UFile instructions.