FHSA

The first home savings account (FHSA) is a new registered plan to help individuals save for their first home. Contributions to an FHSA are generally deductible and qualifying withdrawals made from an FHSA to purchase a qualifying home are tax-free.

Any taxable withdrawals that were made from the deceased person’s FHSA before their death would be treated normally and must be included on the deceased person’s income tax and benefit return for the year the withdrawal is received. The withdrawal will be subject to income tax withholding, which can be claimed on the deceased person’s income tax and benefit return as a credit towards any tax owing for the year of the withdrawal.

Other FHSA amounts that are usually reported as income that were received or deemed to have been received by the deceased person before their death would also be treated normally and must be included on the deceased person’s income tax and benefit return for the year that the amounts are received or deemed to have been received. For more information about FHSAs and what happens when the FHSA holder dies, go to Death and FHSAs.

If the deceased person opened one or more FHSAs in 2025 or a previous year, complete Schedule 15, FHSA Contributions, Transfers and Activities, to calculate their FHSA deduction and enter the result on line 20805 of the deceased person’s income tax and benefit return. For more information about FHSA deductions, go to Tax deductions for FHSA contributions.