Northern Tax Exemption

[Daidalous]

To any clerks or people that have been to alert


OK so here is the skinny.  I got a nice shinny piece of paper saying that I get $1297 for being in CFS Alert (Northern Tax Exemption)  The orderly room in Alert told me that this money was tax free. To my surprise I brought my paper work and my t4(which does not mention this tax exemption) to H&R block, the tax professional crunched in all the numbers and told me that I get 22% of the Northern tax exemption because I am in the 22% tax bracket. (I am only to get $285.34 ack!!!!)  I questioned her on it she phoned there regional office and the Registered accountant there said the same thing.  They have to be wrong if I only get 22% of my money then they are taxing me 78% .  Or was i being lied to in Alert.

 

[Northern Ranger]

First don't ask a clerk, I'm one and I know squat about the taxes.  However I asked my wife and a few questions need to be answered.

What province do you live in and how long were you in Alert.  Plse PM me

 

[FormerHorseGuard]

when i lived up in the north , not as far north as alert but in iqaluit i was doing payroll for the only hospital up there and we paid northern allowance to the people who worked there. it was taxable and yes you had to claim it,  it was considered part of your income. the more north you go the higher the allowance. it replaced the travel allowance people got and abused.
maybe the army has different rules or it comes under something else but most of the allowances paid up north are taxable

 

[PO2FinClk]

Don't forget that when you go to Alert even over the Dec/Jan range, it is not your offical residence for Income Tax purposes.

 

[armyvern]

Was your shiney letter something like this:

To Whom it may concern,
The letter is to certify that X12 345 678 WO XXXX , a member of the CF was a resident of the Northwest Territories from XX June - XX Dec XX. During that period WO XXXX resided at CFS Alert, Ellesmere Island.

Yes? The RMS clerk screwed up if they told you it was non-taxable. Your Northern residents Deduction would be claimed at line 255 on your T1 General under "Taxable Income." It's always been taxable.

Keep copies of your T2222 (Northern Residents Deduction Form) that H&R Block should also have given you, and a copy of the above letter. I was promptly audited as soon as I had claimed the deduction and this letter is 'proof' of your residency.

For CF members it doesn't matter whether you are there on Dec 31st or not, as the Northern residence deduction is claimable after 186 days north of sixty.

By the way, you were paid that allowance while in Alert. So I hope you weren't expecting another 1287 bucks out of them?? You already got it...on your paycheck.