Report income, transfers, and dispositions
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Income on the Final Return and optional T1 returns
Complete a T1 Income Tax Package for each Final Return and optional T1 return you file. If you choose not to file any optional T1 returns, include all income earned up to the date of death in the Final Return, even if it is received after the date of death.
You may only file an optional T1 return if you have income from eligible sources and time periods to report on that return.
Most of the income amounts to be reported on the returns can be found on tax slips or previous T1 Returns of the person who died. Ensure that you, as a representative of the deceased, have access to the deceased's tax records through Represent a Client.
If the person who died received any foreign income
If the deceased earned foreign income at any time in 2023, see Reporting foreign income and other foreign amounts.
Minimum tax does not apply in the year of death
Minimum tax does not apply to a person for the year of death. However, the deceased may have paid this tax in one or more of the 7 years before the year of death. If this is the case, you may be able to deduct part or all of the minimum tax the deceased paid in those years from the tax owing for the year of death. For more information, refer to Line 40427 – Minimum tax carryover.
The table below shows common income types that have special considerations for the Final Return and optional T1 returns.
| Line number | Income type | Found on slip |
|---|---|---|
| 10100 to 10400 | Employment income | T4, T4A, and T4PS |
| 11300 | Old Age Security pension | Box 18 of the T4A(OAS) |
| 11400 | CPP or QPP benefits | Box 20 of the T4A(P) |
| 11500 | Other pensions or superannuation | Box 016 of the T4A, box 31 of the T3, various boxes in the T4RIF |
| 11600 | Elected split-pension amount | N/A |
| 11900 | Employment insurance benefits | Box 14 of the T4E |
| 11905 | Employment insurance maternity and parental benefits and provincial parental insurance plan benefits | Provincial parental insurance amounts from box 36 and maternity or parental EI amounts from Box 37 of the T4E |
| 12000 to 12100 | Investment income, such as dividends and interest | T5, T4PS, T3, T5013 |
| 12500 | Registered Disability Savings Plan (RDSP) | Box 131 of the T4A |
| 12599 to 12600 | Rental income | N/A |
| 12700 | Taxable capital gains on belongings, property, and investments Calculate taxable capital gains and losses for all belongings, property and investments, which are deemed to be disposed, even if they are not sold on the date of death. |
Various |
| 12900 | T4RSP | |
| 13000 | Other income, including: |
Various |
| 13499 to 14300 | Self-employment income | T5013 or other business records |
| 14400 | Workers' compensation benefits | Box 10 of the T5007 |
| 14500 | Social assistance payments | Box 11 of the T5007 |
| 14600 | Net federal supplements paid | Box 21 of the T4A(OAS) |
For more details on line-by-line income in the T1 Income Tax and Benefit Return, refer to All types of income.
Income on a T3 Trust Income Tax and Information Return
Report any income the estate earned after death in a T3 Trust Income Tax and Information Return (T3 Return). Although T1 and T3 Returns are structured differently and use different line numbers, most types of income that can be reported on a T1 Return can also be reported on a T3 Return.
Find out if you need to file a T3 Return.
The table below shows common income types that have special considerations for the T3 Return.
| Line number | Income types | Found on slip |
|---|---|---|
| 1 | Taxable capital gains on belongings, property, and investments after the date of death | Various |
| 2 | Pension income received after the date of death | Box 016, 018 and 024 of the T4A, Box 22 of the T4RIF, Box 28 of the T4RSP |
| 3 to 5 | Investment income, such as dividends and interest earned after the date of death Includes earnings from investments after the date of death that were in a TFSA before the date death. |
T5, T4PS, T3, T5013 |
| 6 | Business income after the date of death | T2125, T5013, as well as other operating statements |
| 7 | Farming or fishing income after the date of death | T2042, T2121, as well as other operating statements |
| 8 | Rental income after the date of death | T776, as well as other rental income statements |
| 9 | AgriInvest Fund 2 payments (for farmers). Refer to the T4013 T3 Trust Guide. | Box 18 of the AGR-1, Box D of the RL-21 |
| 10 | Income or loss from a deemed disposition (generally only applies to a trust that already existed before the date of death). Refer to the T4013 T3 Trust Guide. | T1055 |
| 11 | Employer death benefit (up to $10,000 may be non-taxable) | Box 106 of the T4A |
| 11 | CPP or QPP death benefit (if not reported by the recipient) | Box 18 of the T4A(P) |
| 11 | Other types of income received after the date of death, listed in Chart 2 of the T4011 Guide | Various |
For more details on line-by-line income in the T3 Return, refer to the T4013 T3 Trust Guide.
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