If you lived in a prescribed northern or intermediate zone for at least 6 consecutive months (a period that can begin or end in 2016), you can use form TP-350.1-V to calculate the deduction you’re entitled to claim as a resident living in a remote area of Québec.
Your total deduction amount includes the following:
- A deduction for housing and
- A deduction for travel for which you received taxable benefits from your employer*
*The taxable benefit of these trips will be reported in Box K of your RL-1 slip.
Keep in mind that if you claim a deduction for trips that you needed to take so that you could receive medical care, you won’t be able to use those same expenses to calculate a credit elsewhere on your return.
Note: If you’re also claiming a federal deduction for living in a prescribed northern or intermediate zone, you’ll need to complete form T2222: Northern Residents Deduction.
What if my principal residence is located outside the remote area?
Just because you regularly live in a remote area of Québec, doesn’t necessarily mean you can claim this deduction. For example, if your principal residence is located outside of the remote northern or intermediate zone, you won’t be able to claim this deduction if:
- You left the area each week or
- You regularly alternate living within and without the prescribed zone (8 days in, 6 days out)
Of course, temporary departures (like vacations or short term work assignments) aren’t considered interruptions to your period of residence in the remote area.
Claiming the travel deduction
To claim the travel deduction, there are a few conditions you’re required to meet:
- You must have been an employee (and not a business owner)
- You must deal at arm’s length with your employer and
- You must have received a travel-related amount or benefit from your employer
You don’t need to claim the housing deduction in order to claim the travel deduction. For example, even if your spouse claims the full amount of the housing deduction for your home on their return, you can still claim the travel deduction as long as you meet the conditions above.
Where do I claim this?
Follow these steps in H&R Block’s tax software to file your 2016 taxes:
Before you begin, make sure that you told us you lived in QUÉBEC on December 31, 2016.
- On the PREPARE tab, click the OTHER icon. You will find yourself here:
- Under the SPECIAL SITUATIONS heading, select the checkbox labelled, Calculation of the deduction for residents of designated remote areas (TP-350.1-V), then click Continue.
- When you arrive at the page for the Calculation of the deduction for residents of designated remote areas (TP-350.1-V), enter your information into the tax software.