Line 25500 – Do you qualify for the northern residents deductions?

Note: Line 25500 was line 255 before tax year 2019.

You qualify if you lived on a permanent basis in a prescribed northern zone (Zone A) or prescribed intermediate zone (Zone B), for a continuous period of at least six consecutive months. This period can begin or end in the tax year specified in Step 1 of Form T2222, Northern Residents Deductions.

Deceased persons – A person who died in the year qualifies if they lived in a prescribed zone for six months or more before the date of death.

Moving – Your period of residency is not affected if you moved from one place in a prescribed zone directly to another place in a prescribed zone.

Absences from a prescribed zone – If you lived in a prescribed zone on a permanent basis, absences from a prescribed zone do not usually affect your period of residency.

To determine if you lived in the prescribed zone on a permanent basis, the CRA considers the number of your absences from the prescribed zone, and the purpose and length of your absences.

If you have not lived in a prescribed zone for a continuous period of at least six consecutive months at the time you file your return, you do not yet qualify. File your return without making the claim. When you qualify, you can ask the CRA to adjust your return. To do so, follow the instructions at How to change a return.

Forms and publications

• Income Tax Package – Guide, Return, and Schedules
• Form T2222, Northern Residents Deductions
• Information Sheet RC4650, Northern Residents Deductions
• Archived Interpretation Bulletin IT-91R4, Employment at Special Work Sites or Remote Work Locations