ARCHIVED - Deductions (Net income and Taxable income)

On this page...

• Step 3 – Net income
• Calculation of net income (page 4 of your return)
  • Line 20600 – Pension adjustment
  • Line 20700 – Registered pension plan (RPP) deduction
  • Line 20800 – RRSP deduction
  • Line 20810 – Pooled registered pension plan (PRPP) employer contributions
  • Line 21000 – Deduction for elected split-pension amount
  • Line 21200 – Annual union, professional, or like dues
  • Line 21300 – Universal child care benefit (UCCB) repayment
  • Line 21400 – Child care expenses
  • Line 21500 – Disability supports deduction
  • Line 21700 – Business investment loss
  • Line 21900 – Moving expenses
  • Line 22000 – Support payments made
  • Line 22100 – Carrying charges and interest expenses
  • Line 22200 – Deduction for CPP or QPP contributions on self-employment and other earnings
  • Line 22215 – Deduction for CPP or QPP enhanced contributions on employment income
  • Line 22300 – Deduction for provincial parental insurance plan (PPIP) premiums on self-employment income
  • Line 22400 – Exploration and development expenses
  • Line 22900 – Other employment expenses
  • Line 23100 – Clergy residence deduction
  • Line 23200 – Other deductions
  • Line 23500 – Social benefits repayment
  • Line 23600 – Net income
• Step 4 – Taxable income
  • Line 24400 – Canadian Forces personnel and police deduction
  • Line 24900 – Security options deductions
  • Line 25000 – Other payments deduction
  • Line 25100 – Limited partnership losses of other years
  • Line 25200 – Non-capital losses of other years
  • Line 25300 – Net capital losses of other years
  • Line 25400 – Capital gains deduction
  • Line 25500 – Northern residents deductions
  • Line 25600 – Additional deductions

Step 3 – Net income

Calculation of net income (page 4 of your return)

See the lines that apply to you. Using your information slips, along with the instructions provided on the return, schedule, and worksheet, calculate your deductions.

⬤▲Line 20600 – Pension adjustment

Report on line 20600 the total of all amounts shown in box 52 of your T4 slips or box 034 of your T4A slips. Generally, this total represents the value of the benefits you earned in 2019 under a registered pension plan or a deferred profit-sharing plan. 

If you have any questions about how your PA was calculated, contact your employer.

If, in 2019, you were a deemed resident of Canada and you participated in a foreign pension plan in 2019, you may have to report an amount on this line.

If you participated in a foreign employer-sponsored pension plan or in a social security arrangement (other than a United States (U.S.) arrangement), get Form RC269, Employee Contributions to a Foreign Pension Plan or Social Security Arrangement for 2018 – Non-United States Plans or Arrangements, and complete it (if applicable).

If you are temporarily working in Canada and you continue to participate in your employer's retirement plan in the U.S., get Form RC267, Employee Contributions to a United States Retirement Plan for 2019 – Temporary Assignments, and complete it (if applicable).

If you are a Canadian resident who travels to work in the U.S. and you participate in your employer’s retirement plan in the U.S., get Form RC268, Employee Contributions to a United States Retirement Plan for 2019 – Cross-Border Commuters, and complete it (if applicable).

⬤▮▲Line 20700 – Registered pension plan (RPP) deduction

Generally, you can deduct the total of all amounts shown in box 20 of your T4 slips, in box 032 of your T4A slips, and on your union or RPP receipts. See Guide T4040, RRSPs and Other Registered Plans for Retirement, or contact the CRA to find out how much you can deduct if any of the following apply:

• You contributed more than $3,500 to an RPP and your information slips show a past-service amount for service before 1990
• You contributed an amount to an RPP in an earlier year, for a period before 1990, and you have not fully deducted that amount

Supporting documents – Attach to your return your T4 and T4A slips but do not send your other documents. Keep them in case the CRA asks to see them later.

⬤▮▲Line 20800 – RRSP deduction

Specified pension plan (SPP) contributions generally have the same rules as RRSP contributions. See Schedule 7 to see if you are required to complete it and to know if you can claim RRSP/PRPP deduction. Deduct the amount from line 17 of Schedule 7.

If you need more information, go to RRSPs and related plans or see Guide T4040, RRSPs and Other Registered Plans for Retirement.

Supporting documents – Attach your completed Schedule 7 (if applicable) to your return. Also send your official receipts for all amounts you contributed from March 2, 2019, to March 2, 2020, including those you are not deducting on your return for 2019 and those you are designating as Home Buyers’ Plan (HBP) or Lifelong Learning Plan (LLP) repayments.

Non residents and non residents electing under section 217 – Certain Canadian source amounts otherwise subject to non resident withholding tax can, instead, be transferred to a registered retirement savings plan (RRSP), pooled registered pension plan (PRPP), a registered pension plan (RPP), or a registered retirement income fund (RRIF) without having this tax withheld. These amounts include payments out of a RPP, deferred profit sharing plan, a RRIF, a RRSP, a PRPP, or a retiring allowance. The amounts must be transferred directly, and you must complete Form NRTA1, Authorization for Non Resident Tax Exemption. For more information, contact the CRA.

⬤▮▲ Line 20810 – Pooled registered pension plan (PRPP) employer contributions

Report the total of all amounts shown in the designated “employer contribution amount” box of your PRPP receipts.

If you have any questions about your employer’s contributions to your PRPP, contact your employer.

⬤Line 21000 – Deduction for elected split-pension amount

Claim the amount you are transferring to your spouse or common-law partner if you made a joint election to split your eligible pension income by completing Form T1032, Joint Election to Split Pension Income. For more information, see Line 11500.

⬤▮▲Line 21200 – Annual union, professional, or like dues

Claim the total of the following amounts related to your employment that you paid (or that were paid for you and reported as income) in the year:

• annual dues for membership in a trade union or an association of public servants
• professional board dues required under provincial or territorial law
• professional or malpractice liability insurance premiums or professional membership dues required to keep a professional status recognized by law
• parity or advisory committee (or similar body) dues required under provincial or territorial law

For more information, see interpretation bulletins IT-103, Dues paid to a union or to a parity or advisory committee, and IT-158, Employees' professional membership dues. 

Supporting documents – Attach to your return your T4 slips but do not send your other documents. Keep them in case the CRA asks to see them later.

⬤▮▲Line 21300 – Universal child care benefit (UCCB) repayment

The person who reported the UCCB income in the previous year can claim the related 2019 repayment amount on line 21300. The UCCB repayment amount is shown in box 12 of the RC62 slip. To view your UCCB information, go to My Account for Individuals.

⬤▮▲Line 21400 – Child care expenses

You or your spouse or common-law partner may have paid someone to look after your child so one of you could earn employment or self-employment income, go to school, or conduct research in 2019. The expenses are deductible only if at some time in 2019 the child was under 16 years of age or had an impairment in physical or mental functions.

For more information and to make your claim, get and complete Form T778, Child Care Expenses Deduction for 2019.

Non-residents and non-residents electing under section 217 – You can claim child care expenses only if you meet the criteria outlined on Form T778 and the expenses were paid to a resident of Canada for services provided in Canada.

Supporting documents – Attach to your return your completed Form T778 but do not send your other documents. Keep them in case the CRA asks to see them later.

⬤Line 21500 – Disability supports deduction

Claim expenses you paid for personal attendant care and other disability supports expenses allowing you to go to school or earn certain income. This includes income from employment or self-employment and a grant you received for conducting research.

Supporting documents – Do not send any documents. Keep them in case the CRA asks to see them later.

⬤▮▲Line 21700 – Business investment loss

A business investment loss is a special type of capital loss and can occur, for example, when you dispose of shares or certain debts of a small business corporation. For more information, see Guide T4037, Capital Gains.

Non-residents and non-residents electing under section 217 – A business investment loss applies to you only if the loss arises from the disposition of taxable Canadian property.

⬤▮▲Line 21900 – Moving expenses

Deemed residents – Generally, you can claim moving expenses you paid in 2019 if both of the following apply:

• You moved to work or to run a business, or you moved to study courses as a full-time student enrolled in a post-secondary program at a university, a college, or another educational institution.
• You moved at least 40 kilometres closer to your new workplace or school.

Non-residents and non-residents electing under section 217 – You can only deduct moving expenses if you were a full-time student during 2019. If this is your situation, contact the CRA for the special rules that apply to you.

Supporting documents – Do not send any documents. Keep them in case the CRA asks to see them later.

⬤▮▲Line 22000 – Support payments made

Report on line 21999 of your return the total of all deductible and non-deductible support payments you made in the year for a spouse or common-law partner, or for a child. If you are the payee, report any amounts that you repaid under a court order in the year. Claim on line 22000 of your return only the deductible amount. For more information, see Guide P102, Support Payments.

Supporting documents – Do not send any documents. Keep them in case the CRA asks to see them later.

⬤Line 22100 – Carrying charges and interest expenses

Claim the following carrying charges and interest you paid to earn income from investments:

• fees to manage or take care of your investments (other than any fees you paid for services in connection with your pooled registered pension plan, registered retirement income fund, registered retirement savings plan, specified pension plan, and tax-free savings account)
• fees for certain investment advice (see Interpretation Bulletin IT-238, Fees Paid to Investment Counsel) or for recording investment income
• fees to have someone complete your return, but only if you have income from a business or property, accounting is a usual part of the operations of your business or property, and you did not use the amounts claimed to reduce the business or property income you reported. See Interpretation Bulletin IT-99, Legal and Accounting Fees
• most interest you pay on money you borrow for investment purposes, but generally only if you use it to try to earn investment income, including interest and dividends. However, if the only earnings your investment can produce are capital gains, you cannot claim the interest you paid. For more information, contact the CRA
• legal fees you incurred relating to support payments that your current or former spouse or common-law partner, or the natural parent of your child, will have to pay to you. 

Policy loan interest – To claim interest paid during the year on a policy loan made to earn income, ask your insurer to complete Form T2210, Verification of Policy Loan Interest by the Insurer.

Refund interest – If the CRA paid you interest on an income tax refund, report the interest in the year you receive it on line 12100 of your return. If the CRA then reassessed your return and you repaid any of the refund interest in 2019, you can claim on line 22100 of your return, the amount you repaid, up to the amount you had reported as income.

You cannot claim on line 22100 any of the following amounts:

• the interest you paid on money you borrowed to contribute to a registered retirement savings plan, a pooled registered pension plan, a specified pension plan, a registered education savings plan, a registered disability savings plan, or a tax‑free savings account (TFSA)
• safety deposit box charges
• the interest part of your student loan repayments (although you may be able to claim a credit on line 31900 of your return for this amount)
• subscription fees paid for financial newspapers, magazines, or newsletters
• brokerage fees or commissions you paid when you bought or sold securities. Instead, use these costs when you calculate your capital gain or capital loss. For more information, see Guide T4037, Capital Gains, and Interpretation Bulletin IT‑238, Fees Paid to Investment Counsel
• legal fees you paid to get a separation or divorce, or to establish custody of, or visitation arrangements for a child

Carrying charges for Canadian and foreign income – If you have carrying charges for Canadian and foreign investment income, complete the chart for lines 12000, 12100, 12010, and 22100 on the Worksheet for the return.

Supporting documents – Do not send any documents. Keep them in case the CRA asks to see them later.

If you have a tax shelter, see Tax shelters.

⬤Line 22200 – Deduction for CPP or QPP contributions on self-employment and other earnings

Claim contributions you:

• have to make on self-employment and limited or non-active partnership income
• choose to make on certain employment income (see Making additional CPP contributions)
• choose to make on your provincial income tax return for Quebec on certain employment income (see your Quebec provincial guide)

The CPP or QPP contributions you have to make, or choose to make, will depend on how much you have already contributed to the CPP or QPP as an employee, as shown in boxes 16 and 17 of your T4 slips.

Making additional CPP contributions

You may be able to make CPP contributions on certain income when:

• no contribution was made (for example, tips not shown on a T4 slip)
• you had more than one employer in the year and the total CPP contributions on all T4 slips are less than the required amount

For more information, see Making additional CPP contributions.

How to calculate your contributions

New As of 2019, contributions include a base and an enhanced amount.

Complete Schedule 8 or Form RC381, whichever applies, to determine the CPP or QPP payable on your self-employment income or on income for which you can make more contributions.

Because CPP and QPP rates for base contributions are different, see the following instructions and choose the one that applies to your situation.

If you do not have to file a return for the province of Quebec, use the version of Schedule 8 for CPP contributions, enter on line 22200 of your return and on line 31000 of your return, in dollars and cents, the amount from Schedule 8 or use Form RC381, whichever applies. Enter on line 42100 of your return the amount from Schedule 8 or Form RC381, whichever applies.

If you have to file a return for the province of Quebec, use the version of Schedule 8 for QPP contributions, enter on line 22200 of your return and on line 31000 of of your return, in dollars and cents, the amount from Schedule 8 or Form RC381, whichever applies. Line 42100 does not apply to you.

Your CPP or QPP contributions must be prorated, if in 2019 one of the following situations applies:

• You were a CPP participant and turned 18 or 70 years of age or received a CPP disability pension.
• You were a QPP participant and turned 18 years of age or received a QPP disability pension.
• You were a CPP working beneficiary (see Line 30800) and elected to stop paying CPP contributions or revoked an election made in a previous year.
• You are filing a return for a person who died in 2019.

Request for refund of CPP contributions

Under the CPP, all requests for a refund of CPP over-contributions must be made within four years after the end of the year for which the request is being made. See Line 44800.

⬤Line 22215 – Deduction for CPP or QPP enhanced contributions on employment income

New As of 2019, you can claim a deduction for the enhanced contributions on CPP and QPP pensionable earnings you contributed through your employment income.

Whether you contributed to the CPP or QPP, the maximum allowable claim is $80.85.

For more information, see Schedule 8 or Form RC381, whichever applies.

⬤Line 22300 – Deduction for provincial parental insurance plan (PPIP) premiums on self-employment income

If you were considered a resident of Quebec on December 31, 2019, you have to pay PPIP premiums if one of the following conditions applies:

• Your net self-employment income on lines 13500, 13700, 13900, 14100, and 14300 of your return is $2,000 or more.
• The total of your employment income (including employment income from outside Canada) and your net self-employment income is $2,000 or more.

Complete Schedule 10.

⬤▮▲Line 22400 – Exploration and development expenses

Claim this amount if you invested in petroleum, natural gas, mining or certain clean energy generation and energy conservation ventures in 2019. However, if your investment constitutes the operating of a business, as opposed to a passive investment, claim this amount in the calculation of net self-employment income on line 13500.

If you have any questions about these expenses, call our business enquiries line at 1‑800‑959‑5525 (calls within Canada and the United States). If you are outside Canada and the United States, contact the CRA.

Supporting documents – Attach Form T1229 and your T5, T101, and T5013 slips to your return. If you do not have these slips, attach a statement identifying you as a participant in the venture. The statement has to show your allocation (the number of units you own, the percentage assigned to you, or the ratio of your units to those of the whole partnership) and give the name and address of the fund.

⬤▲Line 22900 – Other employment expenses

You can claim certain expenses (including any GST/HST) you paid to earn employment income if the following two conditions apply:

• Your employment contract required you to pay them.
• You did not receive an allowance for the expenses, or the allowance you received is reported as income.

Repayment of salary or wages – You can claim salary or wages you reported as income for 2019 or a previous year if you repaid them in 2019. This includes amounts you repaid for a period when you were entitled to receive wage-loss replacement benefits or workers' compensation benefits. However, you cannot claim more than the income you received when you did not perform the duties of your employment.

Legal fees – You can claim legal fees you paid in the year to collect or establish a right to salary or wages owed to you. The amounts claimed are not tied to the successful outcome of your case. However, the legal expenses must be incurred by you to collect or establish a right to collect an amount owed to you that, if received by you, would have to be included in your employment income. You must reduce your claim by any amount awarded to you for those fees or any reimbursement you received for your legal expenses.

Employees profit sharing plan (EPSP) – You may be eligible to claim as a deduction the excess EPSP amount contributed on your behalf to an EPSP. For more information and to calculate your deduction, get and complete Form RC359, Tax on Excess Employees Profit Sharing Plan Amounts.

Get and complete Form T777, Statement of Employment Expenses, to give the CRA details of your deductions and calculations for your expenses (except those related to an EPSP). Guide T4044, Employment Expenses, contains Form T777 and other forms you will need. The guide also explains the conditions that apply when you claim these expenses.

Supporting documents – Attach to your return your completed Form T777 and/or Form RC359 but do not send your other documents. Keep them in case the CRA asks to see them later.

⬤▲Line 23100 – Clergy residence deduction

If you are a member of the clergy, use this line to claim a deduction for your residence. Your employer has to certify that you qualify for this deduction. Get and complete Form T1223, Clergy Residence Deduction, to find out what you can claim. For more information, see Information Bulletin IT-141, Clergy Residence Deduction.

Supporting documents – Do not send any documents. Keep them in case the CRA asks to see them later.

⬤▮▲Line 23200 – Other deductions

Claim the allowable amounts not deducted elsewhere on your return. Specify the deduction you are claiming in the space provided on the return.

Supporting documents – Do not send any documents. Keep them in case the CRA asks to see them later.

If you have a tax shelter, see Tax shelters.

Income amounts repaid

If in 2019 you repaid amounts you received and reported as income (other than salary or wages) for 2019 or a previous year, you can claim most of these amounts on line 23200 of your return for 2019. However, if you repaid, under a court order, support payments you reported on line 12800 of your return, claim the repayment on line 22000 of your return.

If in 2019 you repaid an amount you received from a registered disability savings plan and reported it as income in 2019 or a previous year, you can claim the amount on line 23200 of your return. For more information, go to Registered disability savings plan (RDSP), see Guide RC4460, Registered Disability Savings Plan, or contact the CRA.

In 2019, you may have had an amount recovered from your gross old age security (OAS) pension (shown in a letter or in box 20 of your T4A(OAS) slip) because of an overpayment you received in a previous period. If so, you can claim a deduction on line 23200 of your return for the amounts repaid.

Employment insurance (EI) benefits – You may have received more benefits than you should have and already paid them back to the payer of your benefits. For example:

• The payer of your benefits may have reduced your EI benefits after discovering the mistake. In this case, your T4E slip will show only the net amount you received, so you cannot claim a deduction.
• If you repaid excess benefits you received directly to the payer of your benefits, box 30 of your T4E slip will show the amount you repaid. Include that amount on line 23200 of your return. This is not the same as repaying a social benefit as explained under line 23500 of your return.

Supporting documents – Attach to your return your documents showing the amounts you repaid.

Legal fees

You can claim your expenses in any of the following situations:

• You paid fees (including any related accounting fees) for advice or assistance to respond to the CRA when the CRA reviewed your income, deductions, or credits for a year or to object to or appeal an assessment or decision under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan, or the Quebec Pension Plan.
• You paid fees to collect (or establish a right to) a retiring allowance or pension benefit. However, you can claim only up to the retiring allowance or pension income you received in the year, minus any part of these amounts transferred to a registered retirement savings plan or registered pension plan. You can carry forward, for up to seven years, legal fees you cannot claim in the year.
• You incurred certain fees to try to make child support payments non-taxable.

You must reduce your claim by any award or reimbursements you received for these expenses. If you are awarded the cost of your deductible legal fees in a future year, report that amount in your income for that year.

For more information about other legal fees you may deduct, see Interpretation Bulletin IT-99, Legal and Accounting Fees.

Other deductible amounts

The following are examples of other amounts you can claim:

• income subject to tax on split income as determined on Form T1206
• depletion allowances (attach to your return a completed Form T1229, Statement of Resource Expenses and Depletion Allowance)
• certain unused RRSP, pooled registered pension plan (PRPP), or specified pension plan (SPP) contributions which were refunded to you or your spouse or common-law partner in 2019 (attach to your return an approved Form T3012A, Tax Deduction Waiver on the Refund of your Unused RRSP, PRPP or SPP contributions from your RRSP, or Form T746, Calculating Your Deduction for Refund of Unused RRSP, PRPP, and SPP Contributions)
• the excess part of a direct transfer of a lump-sum payment from your registered pension plan (RPP), PRPP, and SPP to an RRSP or registered retirement income fund (RRIF) you withdrew and are including on line 12900 or 13000 of your return for 2019. Get and complete Form T1043, Deduction for Excess Registered Pension Plan Transfers You Withdrew From an RRSP, PRPP, SPP or RRIF, to calculate the deductible amount
• designated benefits from a RRIF shown in box 22 of your T4RIF slips, a refund of RRSP premiums shown in box 28 of your T4RSP slips, or the RPP or PRPP amount shown in box 194 of your T4A slips, or SPP amount shown in box 018 of your T4A slips, if you rolled over an amount to a registered disability savings plan (RDSP). These amounts may also be shown on NR4 slips. Attach Form RC4625, Rollover to a Registered Disability Savings Plan (RDSP) Under Paragraph 60(m), or a letter from the RDSP issuer to your return. For more information about RDSPs, go to Registered disability savings plan (RDSP) or see Guide T4040, RRSPs and Other Registered Plans for Retirement

⬤▮▲Line 23500 – Social benefits repayment

Employment insurance (EI) benefits

You have to repay part of the EI benefits (line 11900) you received in 2019. See the Repayment chart on your T4E slip for conditions and to calculate the EI benefits you have to repay.

Deemed residents – If you also have to repay old age security (OAS) benefits you received (see the next section), enter the EI benefits you have to repay on lines 7 and 20 of the chart for line 23500 on the Worksheet for the return.

Old age security (OAS) benefits

Deemed residents – You may have to repay all or a part of your OAS pension (line 11300) or net federal supplements (line 14600) if the result of the following calculation is more than $77,580:

• the amount from line 23400; minus
• the amounts reported on lines 11700 and 12500; plus
• the amounts deducted on line 21300 and the amount for a repayment of registered disability savings plan income included on line 23200

Complete the chart for line 23500 on the Worksheet for the return to calculate your repayment, even if tax was withheld by Service Canada.

Non-residents and non-residents electing under section 217 – If you received OAS pension or net federal supplements in 2019 and you are required to file an Old Age Security Return of Income, do not complete the chart for line 23500 on the Worksheet for the return. Instead, report on this line the amount of recovery tax from line 23500 of your Old Age Security Return of Income.

⬤▮▲Line 23600 – Net income

If the amount you calculate for line 23600 is negative, you may have a non-capital loss. Get and complete Form T1A, Request for Loss Carryback to calculate your loss and any amount you may want to carry it back to your 2016, 2017, or 2018 return. Do not file an amended return for the year or years to which you apply the loss.

Non-residents and non-residents electing under section 217 – Contact the CRA for the special rules regarding loss carrybacks that apply to you.

Step 4 – Taxable income

Calculation of taxable income (page 4 of your return)

To determine your taxable income at line 26000, claim any deductions that apply to you.

⬤Line 24400 – Canadian Forces personnel and police deduction

Claim the total of the amounts shown in box 43 of your T4 slips.

⬤▲Line 24900 – Security options deductions

Claim the total of the amounts shown in boxes 39 and 41 of your T4 slips. In addition, if you disposed of securities for which you had previously deferred the taxable benefit, get and complete Form T1212, Statement of Deferred Security Options Benefits.

⬤Line 25000 – Other payments deduction

If you reported net federal supplements on line 14600 of your return, you may not be entitled to claim the total amount from line 14700 of your return. Complete the calculation below:

• the amount from line 23400 of your return, minus
• the amounts on lines 11700 and 12500 of your return, plus
• the amounts from line 21300 of your return and the amount for a repayment of registered disability savings plan income claimed on line 23200 of your return

If the result is greater than $77,580, contact the CRA to find out how much you can deduct. Otherwise, claim the amount from line 14700 of your return.

⬤▮▲Line 25100 – Limited partnership losses of other years

If you had limited partnership losses in previous years, which you have not already claimed, you may be able to claim part of those losses this year. You can carry forward the losses indefinitely. You cannot use the amount shown in box 108 of your 2019 T5013 slips on your return for 2019. 

Supporting documents – If you claim these losses, attach to your return a statement showing a breakdown of your total losses, the year of each loss, and the amounts claimed in previous years.

⬤▮▲Line 25200 – Non-capital losses of other years

Deemed residents – For 2019, claim the unapplied non-capital, farming, or fishing losses you reported on your 2006 to 2018 returns, which you would like to apply. Losses incurred in 2006 and later years can generally be carried forward for 20 years. Your available losses are shown on your latest notice of assessment or reassessment.

However, there are restrictions on the amount of certain farm losses you can claim each year. If you have a farming or fishing business, see Guide T4002, Self-employed Business, Professional, Commission, Farming, and Fishing Income, Guide RC4060, Farming Income and the AgriStability and AgriInvest Programs Guide, or Guide RC4408, Farming Income and the AgriStability and AgriInvest Programs Harmonized Guide.

If you need more information about losses, see Interpretation Bulletin IT-232, Losses – Their Deductibility in the Loss Year or in Other Years.

Non-residents and non-residents electing under section 217 – Contact the CRA for the special rules that apply to you.

⬤▮▲Line 25300 – Net capital losses of other years

Deemed residents – Within certain limits, you can claim your net capital losses of previous years which you have not already claimed. Your available losses are shown on your notice of assessment or reassessment for 2018. You will probably have to adjust any losses you incurred after 1987 and before 2001. For more information, see Guide T4037, Capital Gains.

Non-residents and non-residents electing under section 217 – Contact the CRA for the special rules that apply to you.

⬤Line 25400 – Capital gains deduction

You may be able to claim a capital gains deduction for gains realized on the disposition of qualified small business corporation shares, qualified farm or fishing property. For more information, see Guide T4037, Capital Gains.

⬤Line 25500 – Northern residents deductions

To make your claim, get and complete Form T2222, Northern Residents Deductions. You can get a copy of this form by going to Forms and publications. For more information, see Information Sheet RC4650, Northern Residents Deductions. For a list of the areas that qualify, see Northern residents.

Supporting documents – Attach to your return your completed Form T2222 but do not send your other documents. Keep them in case the CRA asks to see them later.

⬤▮▲Line 25600 – Additional deductions

In the space provided on the return, specify the deduction you are claiming.

Exempt foreign income

Deemed residents – If you reported foreign income on your return (such as support payments you received from a resident of another country and reported on line 12800 of your return) that is tax-free in Canada because of a tax treaty, you can claim a deduction for it. 

Under the Canada-United States tax treaty, you can claim on line 25600 of your return a deduction equal to 15% of the U.S. Social Security benefits, including U.S. Medicare premiums, which you reported as income on line 11500 of your return.

If you have been a resident of Canada and have received U.S. Social Security benefits continuously during the period starting before January 1, 1996, and ending in 2019, you can claim a deduction equal to 50% of the U.S. Social Security benefits received in 2019.

This 50% deduction also applies to you if you are receiving benefits related to a deceased person and you meet all the following conditions:

• The deceased person was your spouse or common-law partner immediately before they died
• The deceased person had, continuously during a period starting before January 1, 1996, and ending immediately before they died, been a resident of Canada and received benefits to which paragraph 5 of Article XVIII of the Canada-United States tax treaty applied
• You have been, continuously during a period starting when the person died and ending in 2019, a resident of Canada and received such benefits

Non-residents and non-residents electing under section 217 – You can claim a deduction for Canadian-source income you reported on your return if it is tax-free in Canada because of a tax treaty. If you do not know whether any part of the foreign income is tax-free, contact the CRA.

Vow of perpetual poverty

If you have taken a vow of perpetual poverty as a member of a religious order, you can claim the earned income and pension benefits you have given to the order. For more information, see Interpretation Bulletin IT-86, Vow of Perpetual Poverty.

Supporting documents – Keep all supporting documents in case the CRA asks to see them later.

Employees of prescribed international organizations

If in 2019 you were employed by a prescribed international organization, such as the United Nations, you can claim a deduction for the net employment income you report on your return from that organization. Net employment income is your employment income minus the related employment expenses you are claiming. If you do not know if your employer is a prescribed international organization, contact your employer.

• Previous
• Table of contents
• Next