Last updated: April 19 2016
CRA has revised Form TD1 2016 Personal Tax Credits Return so that those who live in prescribed and intermediate northern zones can reduce their tax withholdings accordingly and get more of their hard earned money back throughout the year.
Taxpayers who live in a prescribed northern zone or a prescribed intermediate zone and complete their TD1 forms using the old version of the form may want to complete a revised form to minimize their withholding.
For 2016, the Northern Residence Deduction will be increased as follows:
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Check out the new Form TD1 as well as Form T2222, which is used in making the claim. For a place-by-place description of eligibility for each province, see http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns248-260/255/zns-eng.html
The new rates will make a significant difference to take-home pay for those who qualify. To see the impact, check out the free trials of Knowledge Bureau Calculators: Income Tax Estimator and Take-Home Pay Calculator.