USA Social Security: 50% should be exempt due to tax treaty. I don't see this in the deductions nor calculated in foreign income.

Forum|Forum|2 months ago
April 15, 2026
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I read that USA SSA income is subject to the tax treaty where only 50% is taxable. I don't see this 50% deduction anywhere.

user17713445337

Level 6

Under the Canada-U.S. tax treaty, Canadian residents generally include only 85% of U.S. Social Security benefits in income, meaning a 15% exemption applies, not 50%. A 50% deduction is only available if you have received benefits continuously since before January 1, 1996. The 15% deduction is reported on line 25600 of your T1 return.

When did you start receiving these benefits? If it was after Jan 1, 1996, they only qualify for the 15% deduction, not the 50%.

You must select the specific 'U.S. Social Security' slip or entry. If they just put it in a general 'Foreign Income' box, the software won't trigger the automatic deduction on Line 25600.

Can you check Line 25600 of your T1 General? Check the 'Detailed Tax Summary.' If there is an amount on Line 25600, the 15% treaty deduction is working—it just isn't the 50% that you were expecting.