What You Need to Know When Filing a Tax Return for Your Loved One Who Has Passed Away in Canada

Filing a tax return for a loved one who has passed away can be a daunting task. Here’s what you need to know to ensure that you are fulfilling your tax obligations while honouring your loved one’s memory:

Determine the Date of Death: The first step in filing a tax return for a deceased individual is to determine the date of death. This will determine the reporting period for the tax return.

Notify the CRA:

As soon as possible after the death, you must notify the Canada Revenue Agency (CRA) by phone or by mail. This will ensure that any benefits or credits to which your loved one was entitled are stopped and that their tax records are properly updated.

File the Final Tax Return:

You will need to file a final tax return for your loved one, covering the period from January 1 of the year of death up to the date of death. The return should be filed by April 30 of the following year, unless an extension has been granted.

Consider Terminal Return Options:

If your loved one had income that extended beyond their date of death, you may need to file a Terminal Return. This return covers the period from the date of death up to the end of the tax year and can help to reduce or eliminate taxes owed.

Apply for Benefits and Credits:

Your loved one may have been entitled to certain benefits and credits, such as the GST/HST credit or the Canada Child Benefit. Be sure to apply for these benefits on their behalf to ensure that you are maximizing their entitlements.

At Green & Company, we specialize in tax preparation for deceased individuals and can help you navigate the complexities of filing a tax return for your loved one. Contact us today to learn more about our expertise in estate planning and tax services.