CPP or QPP contributions

In addition to the usual calculations for CPP and QPP contributions, there are some additional steps when calculating for the Final Return and optional T1 returns of someone who died.

For reporting income from CPP or QPP, refer to CPP or QPP benefits - Pension income.

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Determine what form to use

Get the form to calculate the deceased’s CPP or QPP contributions based on the deceased’s province of residence:

If the deceased was not a resident of Quebec

If the deceased earned employment income in the province of Quebec in the year of death, use:

Otherwise, use:

If the deceased was a resident of Quebec

If the deceased earned employment income in a province or territory other than Quebec in the year of death, use:

Otherwise, use:

Amounts you will need from the deceased's records

To complete the calculation in Schedule 8 or Form RC381, you will need the following amounts from the deceased's records:

Amounts for the CPP/QPP deductions calculation
Amount you need Guidance
Pensionable earnings from employment reported in box 26 of the T4 slip This amount may be more than the prorated maximum pensionable earnings for the calendar year.
Contributions withheld on employment income reported in box 16 (CPP) and box 17 (QPP) of the T4 slip(s) This amount may be greater than the required contributions for the calendar year based on the calculated prorated pensionable earnings.
Pensionable earnings from self-employment  
Income you want to make additional contributions on

For residents of provinces other than Quebec, this would include CPP employment earnings not found on a T4 slip on which you elect to pay CPP contributions, or additional T4 employment earnings.

For residents of Quebec, refer to the instructions on line 50373 on the Schedule 8 or Form RC381.

Claim the amounts on a Final Return or optional T1 return

Employment income

The results from the calculations on employment income from Schedule 8 or Form RC381, whichever applies, will be claimed on the applicable lines on the tax return:

  • 22215 (deduction for the CPP or QPP enhanced contributions on employment income)
  • 30800 (non-refundable tax credit for the base CPP or QPP contributions on employment income)
  • 44800 (CPP/QPP overpayment)
    • If there is also self-employment income and other earnings, any overpayment will be applied against the required contributions on those earnings
    • If there is no self-employment income and other earnings:
      • Include this amount if there is an overpayment and the deceased was a resident of a province or territory other than Quebec
      • If they were a resident of Quebec, any overpayment will be claimed on their Revenu Quebec income tax return

What you can claim on an optional T1 return

The deduction, non-refundable credit, and overpayment for CPP/QPP contributions may be claimed on an optional Return for Rights or Things if there are pensionable employment earnings reported on that return.

How to calculate the amounts to claim on a Return for Rights or Things

If CPP/QPP pensionable earnings from employment income are reported on an optional Return for Rights or Things, you may be able to claim a tax credit and deduction for contributions on lines 22215 and 30800 and an overpayment on line 44800.

Use the total pensionable earnings reported and contributions on all T4 slips for the year of death (this includes amounts that might already have been calculated for the Final Return).

Follow Schedule 8 or Form RC381, whichever is applicable, to calculate the amount for each line:

  • For line 22215, subtract the amount that was claimed at line 22215 on the Final Return
  • For line 30800, subtract the amount that was claimed at line 30800 on the Final Return
  • For line 44800, subtract the amount that was claimed at line 44800 on the Final Return

Self-employment income and other earnings

The results from the calculation of contributions on self-employment income and other earnings from Schedule 8 or Form RC381 will be claimed on the applicable lines on the tax return:

  • 22200 (deduction for the CPP or QPP contributions on self-employment and other earnings)
  • 31000 (non-refundable tax credit for the base CPP or QPP contributions on self-employment and other earnings)
  • 42100 (CPP contributions payable on self-employment and other earnings)
    • If the required contributions amount is positive:
      • Include this amount if the deceased was a resident of a province or territory other than Quebec
      • If they were a resident of Quebec, the amount of QPP contributions payable is reported on their Revenu Quebec income tax return
  • 44800 (CPP/QPP overpayment)
    • If the required contributions amount is negative, the overpayment is 50% of the negative amount
      • Include this amount if the deceased was a resident of a province or territory other than Quebec
      • If they were a resident of Quebec, the amount of QPP contributions payable is reported on their Revenu Quebec income tax return

What you can claim on an optional T1 return

The deduction, non-refundable credit, and overpayment for CPP/QPP contributions may be claimed on an optional Return for a Partner or Proprietor, if the fiscal year end of the businesses or partnerships is not December 31 and self-employment earnings are reported on that return.

If the fiscal year end is December 31, the deduction, non-refundable credit, and overpayment for CPP/QPP contributions must be claimed on the Final Return.

How to calculate the amounts to claim on a Return for a Partner or Proprietor

If CPP/QPP pensionable earnings from self-employment income are reported on an optional Return for a Partner or Proprietor, you may be able to claim a tax credit and deduction for contributions on lines 22200 and 31000, and the required contributions on line 42100.

Use the total pensionable earnings reported and contributions on all T4 slips for the year of death (this includes amounts that might already have been calculated for the Final Return or Return for Rights or Things). Add the self-employed pensionable earnings from the end of the first fiscal period to the date of death.

Follow Schedule 8 or Form RC381, whichever is applicable, to calculate the amount for each line:

  • For line 22200, subtract the amount that was claimed at line 22200 on the Final Return
  • For line 31000, subtract the amount that was claimed at line 31000 on the Final Return
  • For line 42100, subtract the amount that was claimed at line 42100 on the Final Return

How to prorate amounts in the year of death

In the year of death, the maximum pensionable earnings and the basic exemption are always prorated.

Self-employment earnings are not prorated because of the death, but there may be additional situations in the year of death that will require self-employment income and other earnings to be prorated. Additional situations in the year of death will also affect the number of months used to prorate the maximum pensionable earnings, basic exemption and self-employment earnings.

The monthly proration table in Schedule 8 or Form RC381, which indicates the maximum pensionable earnings and the basic exemption, is based on the calculation below:

  • The amount
  • divided by 12 (months in a calendar year)
  • multiplied by The number of months where contributions were required
  • equals Prorated amount

To determine the number of months where contributions were required in the year of death, if there are no additional situations to prorate the amounts:

  • Use the number of months from January up to and including the month of death to calculate the proration
    • For example, if the taxpayer died in November, the number of months is 11 (January to November)

If there are no additional reasons to prorate the amounts, use the formula above to prorate the maximum pensionable earnings and the basic exemption. Do not prorate self-employment earnings.

Additional situations that affect the number of months used to prorate

Determine the number of months used to prorate the maximum pensionable earnings and the basic exemption if any of the additional situations below apply. You also need to prorate self-employment earnings.

The deceased person stopped or started receiving CPP or QPP disability benefits during the year of death

If the deceased person stopped receiving CPP or QPP disability benefits in the year of death:

  • The number of months used to prorate the maximum pensionable earnings and the basic exemption would be based on the number of months the benefits were received and the month of death
    • For example, if the taxpayer received the CPP or QPP disability benefits in January and February and died in October, the number of months would be 8 (March to October, inclusive)
  • The number of months used to prorate the self-employment earnings would be based on the number of months the disability benefits were received
    • For example, if the taxpayer received the CPP or QPP disability benefits in January and February and died in October, the number of months would be 10 (March to December, inclusive)

If the deceased person began receiving CPP or QPP disability benefits in the year of death:

  • The number of months used to prorate the maximum pensionable earnings, the basic exemption, and the self-employment earnings is based on the number of months from January to the month before the month the benefits were first received
    • For example, if the deceased person began receiving CPP or QPP benefits in June of the year of death, the number of months would be 5 (January to May, inclusive)
The deceased person turned 18 during the year of death

If the deceased person turned 18 and died in the same year:

  • The number of months used to prorate the maximum pensionable earnings and the basic exemption would be based on the number of months from the month following the month they turned 18 to the month of death
    • For example, if the deceased person turned 18 in March and died in October, the number of months would be 7 (April to October, inclusive)
  • The number of months used to prorate the self-employment earnings would be based on the number of months from the month following the month they turned 18 to December
    • For example, if the deceased person turned 18 in March and died in October, the number of months would be 9 (April to December, inclusive)
The deceased person turned 70 during the year of death

If the deceased person turned 70 and died in the same year, only the amounts for CPP are prorated. QPP amounts are not prorated.

  • The number of months used to prorate the CPP maximum pensionable earnings, the CPP basic exemption, and the CPP self-employment earnings would be based on the number of months from January to the month the deceased person turned 70
    • For example, if the deceased person turned 70 in August and died in October, the number of months would be 8 (January to August, inclusive)
The deceased person was between 65 and 70 years of age and made an election to stop making CPP contributions in the year of death

If the deceased person was between 65 and 70 years of age and made an election to stop making CPP contributions in the year of death, only the amounts for CPP are prorated. QPP amounts are not prorated.

  • The number of months used to prorate the CPP maximum pensionable earnings, the CPP basic exemption, and the CPP self-employment earnings would be based on the number of months from January to the month the election took effect
    • For example, if the election took effect in August and the person died in October, the number of months would be 8 (January to August, inclusive)
The deceased person revoked a previous election to stop making CPP contributions in the year of death

If the deceased person revoked an election to stop making CPP contributions in the year of death, only the amounts for CPP are prorated. QPP amounts are not prorated.

If the deceased person was under 70 years of age when they died:

  • The number of months used to prorate the CPP maximum pensionable earnings and the CPP basic exemption would be based on the number of months from the month following the month the revocation was made to the month they died
    • For example, if the revocation was made in March and the person died in October, the number of months used to prorate the CPP maximum pensionable earnings and the CPP basic exemption would be 7 (April to October, inclusive)
  • The number of months used to prorate the CPP self-employment earnings would be based on the number of months from the month following the month the revocation was made to December
    • For example, if the revocation was made in March and the person died in October, the number of months used to prorate the self employment earnings would be 9 (April to December)

If the deceased person turned 70 before they died:

  • The number of months used to prorate the CPP maximum pensionable earnings, the CPP basic exemption, and the CPP self-employment earnings would be based on the number of months from the month following the month the revocation was made to the month they turned 70 or died in the year
    • For example, if the revocation was requested in March, the person turned 70 in August, and died in October, the number of months would be 5 (April to August, inclusive)

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