Reporting a CPP/QPP death benefit amount

The Canada Pension Plan / Québec Pension Plan (CPP/QPP) death benefit is a one-time lump-sum payments to the estate of a deceased CPP/QPP contributor. For more information on applying for the CPP or QPP death benefit, go to Death Benefit or Survivors' Benefits (Retraite Québec).

The amount of the death benefit is shown in box 18 of Form T4A(P), Statement of Canada Pension Plan Benefits. Do not report this amount on the final income tax and benefit return for the deceased person. Instead, include this amount in the estate’s taxable income on line 19 of the trust’s T3 trust income tax and information return in the year the payment is received.

If the death benefit is payable to a beneficiary in the year, report the amount on line 47 of the T3 return and on line 926 of Schedule 9. Prepare a T3 Summary and slip in the beneficiary’s name. The beneficiary will have to include the amount on their income tax and benefit return on line 130.

Note

If the death benefit is the only income of the estate, and a T3 return does not otherwise have to be filed, the benefit can simply be reported on line 130 of the beneficiary’s income tax and benefit return.

A death benefit will generally not be taxable if the recipient is not a beneficiary of the estate, and all of the following circumstances apply:

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: