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NWT wildfires: Evacuation won’t affect Northern Residents Deduction

Evacuees from the NWT wildfires will not have to worry about missing out on a portion of the Northern Residents Deduction when the next income taxes are filed.
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Northerners currently under evacuation order will not be penalized for being outside the NWT when claiming the Northern Residents Deduction on their income taxes, says Revenue Canada. Unsplash photo

Evacuees from the NWT wildfires will not have to worry about missing out on a portion of the Northern Residents Deduction when their next income taxes are filed.

A spokesperson for Revenue Canada said the days people are spending in Edmonton, Calgary, Winnipeg and elsewhere because of the evacuation order will not count as days outside the NWT when it comes to claiming the Northern Tax Deduction.

“Generally, if an individual temporarily leaves a prescribed zone due to an evacuation order, the absence will not affect the continuity of their qualifying six-month period,” said Revenue Canada media relations officer Kim Thiffault. “That is, they are still considered to live in a prescribed zone for purposes of the Northern residents deductions, even while they are not physically present in the prescribed zone.”

Anyone who has lived for six months straight or more in the NWT can claim $11 per day. If a person is maintaining and living in a dwelling and they are the only one in their household claiming the aforementioned $11 per day, they can claim an additional $11 per day in tax deductions.

More than 68 per cent of the population of the NWT has been evacuated due to wildfires in the North and South Slave regions. It is still unknown when they will be allowed to return.

READ MORE: MLAs demand additional financial support for NWT evacuees

READ MORE: NWT Fires: UPDATED: GNWT announces $750 relief funding for self-evacuees



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