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NEW Northern Resident's deduction travel benefit

Forum|Forum|4 years ago
March 2, 2022
2 replies
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I was well versed in how to handle this previously but just cannot wrap my head around the changes they've put in this year. I get that everyone can claim the $1,200 benefit. What I don't understand is who can claim what? ex. It used to be that, if one parent had the Box 32 travel deduction, you could claim those amounts (lowest of the three things) as follows:

Mom, Dad, and Child A, B, and C could all travel together twice

OR

Mom and Child A could travel once

Mom and Child B could travel once

Dad and Child A and B could travel once

Dad and Child C could travel once

Child C could travel once alone

and all of these could be claimed on the parent with the Box 32 travel deduction.

But I don't know how it is meant to be split up now - is there a difference?

And lastly, is there an age limit before you can claim the $1,200 amount?

ProFile (Canada)

This topic has been closed for replies.

Best answer by yukonk8

there's no real change to that part - it's still that each human in the family can only have TWO of their trips claimed by anyone. The goofy part is how Profile is set up. If you look at the paper T2222 it's a little more clear. EITHER you do the 1200/person limitation (so you complete the chart) OR you do the Box 32 as you always did and you ignore that little chart altogether. So far, they've been accepted okay!

Y

yukonk8Answer

Level 3

there's no real change to that part - it's still that each human in the family can only have TWO of their trips claimed by anyone. The goofy part is how Profile is set up. If you look at the paper T2222 it's a little more clear. EITHER you do the 1200/person limitation (so you complete the chart) OR you do the Box 32 as you always did and you ignore that little chart altogether. So far, they've been accepted okay!

K

kivacinAuthor

Level 5

Thanks Yukon (living in the Yukon I assume? I lived there for about 11 years). They've just worded it in a way that makes it sound incredibly complicated! So far I've been treating it as I always have or just putting in the amounts for the 2x$600 trips if they don't have a box 32. As you say, it seems to work.

One thing though is that, if I used to have a family of four and both parents receive the travel benefit of $2,500 in their box 32, I claimed two trips PER PERSON on each return (as long as they took four trips of course) So I guess that could be considered as something different. Curious how you would handle one single person's file where the box 32 has $850 in it?

Y

yukonk8

Level 3

If I have a box 32, I just ignore that little chart where it wants you to put everyone's name in and allocate the portion of the 1200. The paper T2222 makes it a little more clear. You can choose if you want to use the box 32 or the $1200/person...just not both!

S

stuckinnorth44

Level 2

Hi Sorry I'm replying, I don't know where to ask.

Both my son and I live in the same household as expenses in the North are just too high for a single person. We both get a box 32 on our T4. Is there a way for him to claim his travel? We usually do one trip together and then a separate trip in a year. It just seems unfair that i claim it all along with the northern residence deductions.

M

Mario B

Level 11

Does this helps? ....

Calculating the Deduction for Travel Benefits

The other aspect of the NRD is the deduction for travel benefits. If you otherwise qualify for the NRD and certain travel benefits have been added to your income because they were paid by your employer, you may claim this part of the NRD as well.

The taxable travel benefit amount received from your employment in the prescribed zone will be shown in Box 32 or 33 of your T4 slip, or in Box 028 or Box 116 of your T4A slip.

You can deduct expenses such as airfare, hotels and meals up to a limit that is the lowest of the following three amounts:

The actual cost of the trip
The amount that your employer included in your income
The amount of the lowest return airfare from your residence to a designated city

K

kivacinAuthor

Level 5

Sorry Mario. I think I understand what happened here now. I think you were answering the person’s question but, because it’s on a conversation I participated in, I got the email stating that this reply was here.

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