Summury
When to file a deceased person’s tax return? The loss of a loved one can be very painful, but as the saying goes, one must go on. There are several tasks to be done, including submitting the deceased’s provincial and federal income tax returns.
What are the deadlines for filing a deceased person’s income tax return?
Depending on the date of death, some deadlines must be respected when filing a deceased person's income tax return.
Canada Revenue Agency (CRA) Deadlines and Timelines
After a loved one has passed, you will have to file what is commonly known as the “final return”. The CRA states the following:
The due date to file the Final Return and pay a balance is:
- "April 30 of the year following the death (if the death occurred between January 1 and October 31 inclusive);
- 6 months after the death, on the same calendar day as the date of death (if the death occurred between November 1 and December 31 inclusive)."
An alternate provision exists if the deceased person or their spouse or common-law partner was self-employed or operated a business.
In such cases, the deadline is June 15 of the year following the death if the death occurred between January 1 and December 15 inclusive. It will be 6 months after the death if the date of death falls between November 16 and December 31 inclusive.
Revenu Québec Deadlines and Timelines
For all intents and purposes, for filing a deceased person's income tax return, the deadlines are the same as those of the CRA.
Thus, if the death occurred between January 1 and October 31, the final income tax return must be filed no later than April 30. On the other hand, if the death occurred between November 1 and December 31, the return must be filed six months after the date of death.
Finally, a common question is how long to keep the tax records after a death. According to Revenu Quebec, the final return should be kept for 6 years.
Who Must File the Deceased Person’s Income Tax Return?
Executor of the Estate
As the executor of the estate, you are obligated to file the deceased person's income tax return(s).
The legal representative must ensure that the final return is submitted for tax purposes. They must report the deceased person's assets, investments, and other taxable income.
Special Cases: In the Absence of an Executor of the Estate or in the Case of a Complex Estate
In the absence of an executor of the estate, professionals such as notaries, lawyers, accountants, etc., offer liquidator (executor) services. This can be very useful in the case of a complex estate with legal and tax implications.
These professionals will handle filing the tax return for the estate and the related documents. They will also assist with the settlement of the estate.
If you wonder what the maximum time is to settle an estate, there is no strict deadline in the Quebec Civil Code, but generally, it is agreed that it should take between 12 and 36 months.
How to Prepare and File the Deceased Person's Income Tax Return?
Gather Necessary Documents
First begin by collecting all of the deceased person's income slips (annuities, QPP, Old Age Security (OAS), interest from Canadian sources, etc.), as well as any deductible expenses for tax purposes (medical expenses and others, for example).
Choose the Submission Method
Once the final return is completed, the executor can choose to submit it online or by mail. Nowadays, it is simpler to submit it online. The process is often much quicker.
Final Return and Optional Returns
While the final return is mandatory, there are also optional returns. These are not mandatory, but if completed, they could reduce or even eliminate the final amount owed by the deceased person. There are three types of optional returns:
- Return for Rights or Things;
- Return for a Partner or Proprietor;
- Return for income from a Graduated Rate Estate.
What Are the Steps After Filing the Return?
Several steps must be completed after the deceased person's final return:
- Settle the deceased person's outstanding taxes, if applicable;
- Request from government authorities (for example, Revenu Québec) a Certificate Authorizing the Distribution of Succession Property;
- Proceed with the distribution of the assets.
In conclusion, you now know when to file the tax return for a deceased person.
At Yves Legaré, with offices in Laval, Longueuil, and Pierrefonds, we support grieving individuals during difficult times. We offer religious services for the deceased and many ask us how much it costs for a cemetery plot. We take the time to answer all of your questions and provide you with as much information as possible.
