Line 25600 – Additional deductions: Exempt foreign income

Note: Line 25600 was line 256 before tax year 2019.

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 you received from a resident of another country and reported on line 12800 of your return.

Under the Canada-United States 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 2021, you can claim a deduction equal to 50% of the U.S. Social Security benefits received in 2021. This 50% deduction also applies if you are receiving benefits related to a deceased person and you meet all of the following conditions:

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.

Forms and publications

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