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Deceased Taxpayer - Final Tax Return

Deceased Taxpayer Tax Preparation . When a loved one in your family dies you still go through the process of tax preparation and filing a tax return for a deceased person. This tax preparation process is similar when person is alive and consists of preparing all income before the death and claim all eligible credits and deductions. Sadly realize, but this is yet a necessary task to do. Canadian government published useful information "What to do when someone has died” to help filing the appropriate tax forms during sorrow times.

Filing the terminal tax must ensure that any debt of a deceased person is paid off to protect you from liability. This process starts with assigning the legal representative responsible for closing all the estate accounts in the trust. The legal representative is granted access to the deceased person's CRA account. They can review notices of assessments, taxes that are due, unused refunds, carried forward deductions, and all the relevant slips (T4s, T3, T5). Other documents that might be needed are bank accounts, RRIF, and RRSP statements to evaluate the assets and earned income of the deceased person. To file the final tax return, the regular T1 form is used following the same route as for a live person. Only after the final tax return is submitted, you begin distributing the assets of the deceased loved one to beneficiaries.

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