Line 25600 – Additional deductions

You can claim a deduction on line 25600 of your return for certain income amounts that you reported on your return.

Topics

• Adult basic education tuition assistance
• Employees of prescribed international organizations
• Exempt foreign income
• Vow of perpetual poverty

Adult basic education tuition assistance

Adult basic education (ABE) is primary or secondary level education, or certain other forms of training.

If you reported income assistance to cover all or part of the tuition fees for your ABE, you can claim a deduction for the following:

• amount from box 21 of your T4E slip
• amount from box 196 of your T4A slip that is more than the scholarship exemption that you can claim for this tuition assistance (for more information about the scholarship exemption, see Income Tax Folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance)

Completing your tax return

Claim on line 25600 of your return the amount of qualifying assistance shown in box 21 of your T4E slip and the amount shown in box 196 of your T4A slip that is more than the scholarship exemption that you can claim for this tuition assistance. Specify the deduction you are claiming in the space provided at line 25600 of your return.

Attach a note to your paper return if you have more than one type of deduction or want to explain your deduction in detail.

Employees of prescribed international organizations

If, in 2023, you were employed by a prescribed international organization, 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.

Completing your tax return

Claim on line 25600 of your return your net employment income from prescribed international organizations that you included in your income. Specify the deduction you are claiming in the space provided at line 25600 of your return.

Attach a note to your paper return if you have more than one type of deduction or want to explain your deduction in detail.

Exempt foreign income

You can claim a deduction if you reported foreign income on your return that is tax-free in Canada because of a tax treaty such as support payments that you received from a resident of another country and reported on line 12800 of your return.

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

If you have been a resident of Canada receiving U.S. Social Security benefits continuously during the period starting before January 1, 1996, and ending in 2023, you can claim a deduction equal to 50% of the U.S. Social Security benefits received in 2023. This 50% deduction also applies if you are receiving benefits related to a deceased person and you meet all of the following conditions:

• The deceased person was your spouse or common-law partner immediately before they died
• The deceased person had been a resident of Canada receiving benefits (where paragraph 5 of Article XVIII of the Canada-United States tax treaty applied) continuously during a period starting before January 1, 1996, and ending immediately before they died
• You have been a resident of Canada receiving benefits continuously during a period starting when the person died and ending in 2023

Completing your tax return

Claim on line 25600 of your return the amount of your foreign income that you included in your income that is non-taxable in Canada because of a tax treaty with a foreign country. Specify the deduction you are claiming in the space provided at line 25600 of your return.

Attach a note to your paper return if you have more than one type of deduction or want to explain your deduction in detail.

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 archived Interpretation Bulletin IT-86R, Vow of Perpetual Poverty.

Completing your tax return

Claim on line 25600 of your return the amount of earned income and pension benefits that you have given to your religious order. Specify the deduction you are claiming in the space provided at line 25600 of your return.

Attach a note to your paper return if you have more than one type of deduction or want to explain your deduction in detail.

Supporting documents

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

Forms and publications

• Income Tax Package
• Income Tax Folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance
• Interpretation Bulletin IT-86R ARCHIVED, Vow of Perpetual Poverty
• Interpretation Bulletin IT-397R ARCHIVED, Amounts Excluded from Income – Statutory Exemptions and Certain Service or RCMP Pensions, Allowances and Compensation
• Interpretation Bulletin IT-397RSR ARCHIVED, Amounts Excluded from Income – Statutory Exemptions and Certain Service or RCMP Pensions, Allowances and Compensation (Special release)
• Interpretation Bulletin IT-506 ARCHIVED, Foreign income taxes as a deduction from income

Related topics

• Individuals – Leaving or entering Canada and non-residents
• Employment and Social Development Canada
• Tax Treaties – Department of Finance Canada