NEW Northern Resident's deduction travel benefit

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?

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!

I just edited my earlier response.  In response to this one though, I figure with the $850 in box 32, it just makes more sense to claim the 2x$600.

(btw...how the heck did you start a new question?!  I looked for way too long, gave up and will message them when they're live tomorrow; there's a glitch in the Canada Training Credit...)

Believe me, they make it difficult.  I've only had to come in and ask a question a few times but, each time I did, I struggled just like you have.  I finally made myself instructions so I'll share them here.  Hope it helps!

Do you know if each person in the family, including children, qualify for the $1,200 amount or is it just the people who actually file a tax return?  I don't see anything anywhere regarding an age requirement.

Here's how I describe this benefit simply to my clients:

You're allowed to write off Transportation (eg airfare or a flat rate of $0.58/km if you drive),
Meals (or a flat rate of $69/day) and Accommodation (receipts required), up to $896.19 per person per trip ("Lowest Return Airfare"). And you're allowed to write off a maximum of 2 trips per year per person, up to the amount you received in box 32 on your T4 OR (and this is new in 2021...) if you DON'T get a number in box 32 of your T4, you can still claim up to $1200 in travel for each person in your household.

So Joe and Jane have two kids, aged 8 and 10.  Joe gets a box 32 of $2242; Jane does not have a Box 32.

So, the total travel that can be claimed by either Joe or Jane is as follows:

Joe can claim up to two trips per person in his family, so 4 people, two trips, up to 944.20 per person per trip (that figure is the Yukon Lowest Return Airfare in 2021), up to $2242 in total.

Jane can claim up to two trips per person in her family, so 4 people two trips, up to 944.20 per person per trip, up to $1200 in total.

Now, the only caveat is that you've got to divide the trips so there are no more than 2 trips being claimed per person by anyone.  So Joe can claim one trip with all 4 of them and another trip he took with only the one kid, and then Jane can claim one trip with her and the other kid....so each person in the family has 2 of their own trips written off by someone.

Make sense?

Thanks for this; however, I'm not entirely sure it does answer it exactly.  Let's look at another scenario.  Say Joe and Jane EACH have a box 32 with $2,000 in it.  The way I've claimed it in the past, and been reviewed for and okayed, is that Joe can claim two trips per person, so say all four of them travel in January and December up to the total of the $2,000 benefit and Joe claims that on his tax return.  And perhaps all four of them travel in the summer, maybe June and August.  Jane could then claim those two trips per person on her tax return as they are different trips than the ones Joe claimed (meaning that no person is claiming twice for the same trip).  Of course she would also be limited to the $2,000 benefit amount.

with me so far :-)

That's how I've done it in the past.  Now though, with this $1,200 per person, I would think that the total for all four people is $4,800.  As that is more than the total of $4,000 that each Joe and Jane can claim, they would be better off using this method for the deduction and it could then be put on either return.  Do you agree with this so far?

I won't continue yet as it would cloud the situation, so I'll let you respond to this first....

Thanks Yukon!

It has always been my interpretation that the most that could be claimed by any taxpayer was 2 trips per person in their family.   Here's the blurb that is on the actual paper T2222 (which is usually the best way to figure out odd forms) 

"Under proposed changes, you can claim, for other (non-medical) reasons, up
to two trips that you took and up to two trips taken by each eligible family
member. You also can claim any number of medical trips taken by you or an
eligible family member. However, no more than two non-medical trips taken
by any individual (themselves or an eligible family member) in a year can be
claimed by all taxpayers combined"

I don't think I've ever not done it this way, so I can't say if it'd fly under scrutiny, but I think that my interpretation is correct.  

Kathi

"Interpretation" is exactly the correct word.  I once had a couple who both had their returns reviewed for travel and they had exactly the same stuff, but for different trips of course.  One was accepted as filed and the other was not and was reassessed.  So even they don't know exactly what it means! LOL 

One thing you wrote there totally stood out to me and I don't think I noticed it when I read through the T2222 form.  The last line says "...by all taxpayers COMBINED".  Despite the fact that I actually highlighted that line when I went through it originally, it must not have sunk in because I never got that from it.  So thank you.  According to that then, the way I've done it for the last 20 years has been wrong! LOL  Unless that particular part is new.  The only physical copy I have is from back in 2003 and it wasn't stated near that clearly.

So thank you so much for the input.  I do appreciate it.  Now it's time to get my act together and get to work.  Sitting on about 20 files at the moment, all waiting to be done.  And I'm sure you have them as well as that is what we do at this time of year!  So take care, have a good season, and thank you again!

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.

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

I will be able to answer this question for you once I get to a keyboard. Currently on my phone and just can’t do it here.

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. 

Hi Kivacin, for your question, i think its explained on these page from CRA

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re... (For AGE eligibility)
 

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...  (SEE EXAMPLE 5) 
 

Example 5 at the bottom of the page explains how it works.  In the example Edward (name 1) is claiming the standard amount of $1,200 (amount 1) for each of the four travelers. For line C, the total amount in row B is identified as $1,200 for each traveler.

If there was more than 1 person claiming a part of the amount of 1200$, then the total  can not be more than 1200.
 

So in Chart B, column 3  , it if there was more than 1 trip, the amount of 1200$ would be lower, depending how they decide to split

As per the age, for a child its 18

Determine who an eligible family member is

An eligible family member is someone who lived with you at the time of the trip and was one of the following:

your spouse or common-law partner
your or your spouse's or common-law partner's child under the age of 18
another individual who is wholly dependent for support on you, your spouse or common-law partner, or both and who is either:

your or your spouse's or common-law partner's parent or grandparent
related to you and wholly dependent by reason of mental or physical infirmity

Complete Chart A in Step 3 of Form T2222, Northern Residents Deductions to identify yourself and any eligible family members who lived with you during the period(s) indicated in Step 1. Show how you allocated each individual's $1,200 standard amount (if applicable).

Complete Chart B to calculate your travel deduction.