If you are a member of the clergy, the place you live may give you a deduction. The Clergy residence deduction goes on line 23100, and your employer has to certify that you qualify for it.
Complete Form T1223, Clergy Residence Deduction, to find out what you can deduct.
Who can claim it
You are eligible to claim the clergy residence deduction on line 23100 if you were a member of the clergy, a member of a religious order, or a regular minister of a religious denomination, and were in one of the following:
- in charge of a diocese, parish, or congregation
- ministering to a diocese, parish, or congregation
- engaged exclusively in full-time administrative service by appointment of a religious order or religious denomination
Both halves matter — who you are, and what you do. The status alone does not carry the claim.
Form T1223 is the document
The form is filled out by two people. You complete Part A and Part C; your employer completes Part B. Without Part B certified by your employer, there is no claim, so it is worth asking for it early rather than at filing time.
Enter on line 23100 the amount determined in Part C of Form T1223.
Which situation you are in
The paperwork depends on how you came to live where you live.
Residence provided by your employer. If the residence you occupied was provided by your employer — you did not rent or own it — the value of this benefit, including any allowance for eligible utilities, is shown as a taxable benefit in box 30 of your T4 slip. Claim that amount on line 23100 and do not complete (B) of Part C.
Residence you owned or rented. If you owned or rented the residence you occupied, complete (B) of Part C, even if you received a housing allowance or an allowance for eligible utilities from your employer. This is the case where your own rent and utility documents come into play, because they are what the amounts in (B) of Part C are built from.
Both, in the same year. If the residence was provided by your employer for part of the year and owned or rented by you for another part, add the two amounts together and claim the total on line 23100.
One limit applies throughout: the amount claimed for the clergy residence deduction cannot be more than the income from qualifying employment on line 1 of Form T1223.
What your documents must show
The CRA's page for this line does not set out fields for rent or utility receipts — the operative document is the certified Form T1223. What the amount in Part C rests on is what you actually paid to live there, so keep the paper that shows it: your lease or rent receipts, and your utility bills for eligible utilities.
Where the residence was provided by your employer, the T4 slip carries the figure and there is nothing to reconstruct.
What to keep
Keep your completed Form T1223 with Part B certified by your employer, your T4 slip, and — if you owned or rented — the rent and utility documents behind the amounts in (B) of Part C.
Whether you are filing electronically or filing a paper return, do not include any documents. Keep all your documents in case the CRA asks to see them at a later date.
Dossier tags rent and utility documents as they arrive and files them under the tax year, so a full year of housing costs is together when Part C gets filled in.
Official CRA sources
Source: Canada Revenue Agency (canada.ca). Not tax advice.