What to do when someone has died

Coping with the death of a loved one is difficult. CRA recognize that you are going through a very difficult time. With this in mind, CRA hopes that the following information will help you by answering some questions you may have.

On the final return, report all of the deceased’s income from January 1 of the year of death, up to and including the date of death. Report income earned after the date of death on a T3 Trust Income Tax and Information Return.

Generally, the final return is due on or before the following dates:

Period when death occurred Due date for the return
January 1 to October 31 April 30 of the following year
November 1 to December 31 Six months after the date of death

If the deceased or the deceased’s spouse or common-law partner was carrying on a business in 2009 (unless the expenditures of the business are mainly in connection with a tax shelter), the following due dates apply:

Period when death occurred Due date for the return
January 1 to December 15 June 15 of the following year
December 16 to December 31 Six months after the date of death

Clearance certificate

As the legal representative, you may want to get a clearance certificate before you distribute any property under your control. A clearance certificate certifies that all amounts for which the deceased is liable to us have been paid, or that we have accepted security for the payment. If you do not get a certificate, you can be liable for any amount the deceased owes. A certificate covers all tax years to the date of death. It is not a clearance for any amounts a trust owes. If there is a trust, a separate clearance certificate is needed for the trust.
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Under proposed changes, you may be eligible to claim as a deduction the excess EPSP amount contributed on your behalf to an EPSP. For more information, and to calculate your deduction, complete Form RC359, Tax on Excess Employees Profit‑Sharing Plan Amounts.

Complete Form T777, Statement of Employment Expenses, to give us details of your deductions and calculations for your expenses (except those related to an employees profit‑sharing plan). Guide T4044, Employment Expenses, contains Form T777 and other forms you will need. The guide also explains the conditions that apply when you claim these expenses.

Supporting documents – If you are filing electronically, keep all your documents in case we ask to see them at a later date. If you are filing a paper return, attach your completed Form T777 and/or Form RC359, but do not send your other documents. Keep them in case we ask to see them at a later date.

Tax Tip
You may be eligible for a rebate of any GST/HST you paid as part of your expenses (see line 457).

A Registered Education Savings Plan (RESP) is a special savings account that can help you, your family or friends start saving now for your child’s education after high school.

RESPs are registered by the Government of Canada so savings for education can grow tax-free until the person named in the RESP enrolls in studies after high school.

For each child named, you can put up to $50,000 into an RESP. There is no annual contribution limit. Note that the Government will only add a grant on the first $2,500 saved annually.
Canada Education Savings Grant

When you open an RESP for your child, the Government of Canada will add the Canada Education Savings Grant to your savings. Since 1998, over three million children have benefited from it.

On the first $500 you save in your child’s RESP account, the Canada Education Savings Grant will give you:

  • up to $200, if your net family income is $38,832 or less
  • up to $150, if your net family income is between $38,832 and $77,664
  • up to $100, if your net family income is more than $77,664

Canada Learning Bond

The Canada Learning Bond is money from the Government of Canada to help modest-income families start saving early for their child’s education after high school.
You can get the Canada Learning Bond for your child if:
your child was born after December 31, 2003; and
your monthly Canada Child Tax Benefit payment (commonly called “baby bonus” or “family allowance”) includes the National Child Benefit Supplement.
If your family qualifies, the Government of Canada will make a payment of $500 into your child’s RESP. Extra payments of $100 a year will be made automatically for children up to age 15, as long as you continue to receive the National Child Benefit Supplement annually. The total Canada Learning Bond available for your child could amount to $2,000. You do not have to contribute any of your own money to get this bond.An additional $25 will be paid into the RESP with the first $500 bond to help cover the cost of opening an RESP.

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Get the kids active and claim a tax credit.

Parents can get a little tax credit for their active children. The Children’s Fitness Credit is a non-refundable credit and allows parents to claim a maximum of $500 paid towards an eligible program. The cost covers registration for each child under the age of 16. It does not cover the costs of things such as equipment or travel expenses.
An eligible program is defined by Canada Revenue Agency as “an ongoing, supervised program, suitable for children, in which substantially all of the activities undertaken include a significant amount of physical activity that contribute to the cardio-respiratory endurance, plus one or more of muscular strength, muscular endurance, flexibility and balance.” Or simply, your kid needs to sweat for the activity to qualify.

The program must last at least eight weeks at a minimum of one session per week. For children under the age of 10, the session needs to last at least 30 minutes. For children 10 – 16, the activity must last an hour.

Children with disabilities are eligible for an additional $500 credit up to the age of 18, provided that a minimum of $100 is paid for an eligible fitness program. The additional credit takes into account the extra costs that children with disabilities encounter when they become involved in programs of physical activity such as specialized equipment, transportation and attendant care.

It is important to obtain a tax receipt from the organization that provides the programs. There are sample receipts online in case your organization is unsure what needs to be included.

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