T4 Code 31 — Special work site (board & lodging exempted)

Tax return implications

• No amount from code 31 is entered on a line of your T1. It is neither income nor a deduction.
• Carry the figure to Form T2222 when you calculate the northern residents deduction claimed at line 25500.
• Code 30 and code 31 are mutually exclusive for the same dollars: code 30 is a taxable board and lodging benefit inside box 14, code 31 is the exempt one outside it.
• Where a third party rather than your own employer provided the benefit, the equivalent figure appears under code 124 on a T4A slip instead of code 31 on a T4.
• An amount that was not included in income for an allowance at a remote work location does not affect your northern residency claim, and is not what code 31 is for.

Common pitfalls & things to check

• Code 31 does not mean every benefit your employer provided was exempt. It reports only the board and lodging benefit at a special work site in a prescribed zone that was covered by a completed Form TD4.
• If the same benefit appears both in box 14 and under code 31, one of the two is wrong. Ask your employer which treatment they applied before you file.
• Ignoring code 31 when you complete Form T2222 overstates the northern residents deduction, and that deduction is a routine CRA review target.
• No signed TD4 means no exemption. If your employer never asked you to complete one, expect the benefit to be taxable and inside box 14 instead of here.

Related T4 boxes