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

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

Completing your tax return

Claim on line 25600 the amount of your foreign income you included in your income that is non-taxable in Canada because of a tax treaty with a foreign country.

Forms and publications

• Income Tax Package - Guide, return, and schedules
• Form T2209, Federal Foreign Tax Credit
• Form T2036, Provincial or Territorial Foreign Tax Credit
• Income Tax Folio S5-F2-C1, Foreign Tax Credit
• Interpretation Bulletin IT-506, Foreign Income Taxes as a Deduction from Income

Related topics

• Individuals - Leaving or entering Canada and non-residents
• Tax Treaties - Department of Finance