Form T2209 Federal Foreign Tax Credit Form: Edit Online Free & Download PDF
Federal Foreign Tax Credit Form: Federal Foreign Tax Credits
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Form T2209 in short
Form T2209 calculates the federal credit for income or profits tax you paid to another country on foreign income that you also report on your Canadian return. It has separate calculations for non-business income, such as foreign wages, pensions or investment income, and for business income. The result goes on line 40500 of your return.
| Issued by | Canada Revenue Agency (CRA) |
|---|---|
| Current version | T2209 E (25) (checked 2026-10-25) |
| Who fills it in | A person who was resident in Canada at any time in the tax year, included foreign source income on their Canadian return, and paid non-business or business tax on it to that country. |
| Who receives it | The Canada Revenue Agency, with your income tax and benefit return. |
| Where to send it | With a paper return, include the form, proof of the foreign tax paid such as a foreign notice of assessment, and a note showing your calculations. For U.S. tax, the form says to attach your W-2, U.S. 1040 return, U.S. Account Transcript and other documents that apply. If you file electronically, keep everything in case the CRA asks. |
| Deadline | Filed with your 2025 income tax and benefit return. For a year before 2025, the form says to use the previous version of the form for that year. |
| Official links | Official page · Official PDF |
What changed
This is the 2025 version for the 2025 tax year (T2209 E (25)).
How to fill out Form T2209, line by line
| Top of form | Country or countries Name every country you are claiming for. If you paid more than $200 in total foreign tax, do the calculation for each country on a separate sheet in Canadian dollars and enter the total. |
| Line 1 (line 43100) | Non-business income tax paid to a foreign country Foreign income or profits tax paid on non-business income, minus amounts deductible under subsections 20(11) or 20(12). Tax paid above what a tax treaty requires does not count. |
| Line 2 (line 43300) | Net foreign non-business income formula Net foreign non-business income divided by net income, multiplied by basic federal tax. Notes 2 to 4 on the form explain each part. |
| Line 3 | Federal non-business foreign tax credit The lesser of line 1 and line 2. |
| Line 4 (line 43400) | Business income tax paid to a foreign country Foreign business income tax for the year plus any unused business foreign tax credits for that country from the 10 years before and the 3 years after. |
| Lines 5 to 10 | Business income limits The net foreign business income formula, the federal surtax on income allocated outside Canada (from Form T2203 or 48% of line 42900), and basic federal tax minus line 3. |
| Line 11 | Federal business foreign tax credit The least of lines 4, 7 and 10. |
| Line 13 | Federal foreign tax credit Line 11 plus line 3. Enter it on line 40500 of your return. It should not be more than line 42900 plus any federal surtax on income earned outside Canada. |
Common mistakes to avoid
- Filling out the form in a foreign currency. The form says to do all calculations in Canadian dollars.
- Sending more than one T2209. The form says to send only one per tax year and use separate sheets per country when total foreign tax is over $200.
- Including income that was deducted on line 25600 as treaty exempt, or foreign income earned in a TFSA, and the tax paid on it.
- Claiming more than 15% of net income on foreign property income (other than real property) as a non-business credit. The excess may be deductible on line 23200 instead.
- Counting foreign tax paid above the treaty rate. The CRA treats that as a voluntary contribution, not foreign tax paid.
- Sending foreign language documents without an acceptable English or French translation that meets the conditions on page 2.
- Forgetting the provincial or territorial credit on Form T2036 when the federal credit does not cover all the non-business tax paid.
Questions about Form T2209
Is T2209 a separate form or part of the return?
It is a separate 5-page CRA form. You complete it and carry the result from line 13 to line 40500 of your return.
Can I claim U.S. Social Security and Medicare taxes?
The form says contributions under the U.S. Federal Insurance Contributions Act (FICA) qualify, when the contribution was required and you are not likely to get a benefit because the U.S. job was temporary and short.
What documents do I need for tax paid to the U.S.?
With a paper return, the form says to attach your Form W-2, U.S. 1040 return, U.S. Account Transcript and other supporting documents that apply. Electronic filers keep them in case the CRA asks.
How much credit can I get?
In most cases, for each country, the lesser of the foreign income tax you actually paid and the Canadian tax otherwise payable on your net income from that country.
What if the federal credit is less than the foreign tax I paid?
If you were not a resident of Quebec on December 31, 2025, you may be able to claim a provincial or territorial credit with Form T2036. You may also be able to deduct remaining net foreign taxes on line 23200.
Can unused foreign tax credits be carried over?
Unused business foreign tax credits can be carried forward 10 years and back 3 years.
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Sources
Checked against the official sources on 2026-10-25. PDF Editor Hub is not affiliated with the Canada Revenue Agency or any government agency. This page is general information, not legal or tax advice.