filing a final return for spouse while living out of country...

[DCB]

Help... I need to know how to find a place to state I am filing for my deceased husband. and do I still enter my own info as spouse?  I returned to Canada later that year and so I  believe I have to file as living in Canada as a widow.  Since we have massive amount of medical bills that year is there nothing we can jointly claim that year or will his medical bills refund be sent to the estate (which I never even opened as not needed.)    

Should I do My taxes first and then list my husband as deceased...or does it matter whose file is done first?  Thank you... I have used Ufile for years and years, but this one is hardest yet to do so want to make sure where to list every thing...including my husbands NR4 slips...sent instead of T slips when living out of country

[TheTaxSmith]

Hello DCB. First you need to establish your residency. Were you and your husband Canadian residents in 2019? From what you describe it seems you are residents for 2020 and would file together. Basically you file all as you normally did and include the medical bills (if needed), but always best to include them. Even if the medical bills are paid by the Estate they are still claimed on your personal returns.

You will file the files together but indicate your husband's date of passing. The investment income (from any T3, T5 or NR4 slips) should be apportioned by the number of days in the year your husband was alive. The balance of investment income should be claimed by the beneficiary. This will add some complication to your file of course.

You will have the ability to do pension splitting for 2020 (if you had eligible pensions). If your husband had any RRSPs and RRIFs you may have an opportunity to decide how they will be claimed.

If your husband passed before the end of the month and any CPP/QPP or OAS and any private pension payments were received after his passing date you have an opportunity to complete what is called a Rights & Things return. This is separate from the Final return. Also any CPP/QPP death benefit should be claimed on a T3 Estate return but can flow through to the beneficiaries return if advantageous.

On the whole you actually have a very complicated return and you should read the guide for deceased taxpayers as provided below:

 https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4011/preparing-returns-deceased-persons-2016.html

 

[DCB]

thank you  to TheTaxSmith member for your reply.  My husband actually passed in July 2018  while we were both living in Mexico.  I returned to Canada in November of 2018.  This means I believe that my husbands tax return has to be totally separate from mine as if I have read correctly, the fact that I returned to Canada and was full time resident again for 31 December, I have to file separately as a widow without being able to claim any tax benefits with my husband... am I correct?   In 2018 I should have received some NR4s and also some regular T slips for November and December.  One of the biggest problems I am now having is that its taken me this long to actually Get any tax slips.... unfortunately Revenue Canada seems to have sent all of 2018 slips to Mexico instead of here and they were lost.  I had many long phone calls trying to resolve this matter with no results and a long letter in September of 2019, saying what I needed and including my husbands will and death certificate were received by them but no info ever arrived.  I suffered a health problem in early December 2019 which forced me to put off dealing with taxes for a few months, and then in May last year my oldest son died, and so I again put off dealing with taxes until last fall when I was on the phone again to Revenue Canada ... on hold for 4 hours.. then a long discussion, saying please send these tax slips so I could finally do taxes... have never been late for taxes ever till now.  Anyway I was told that yes, finally, I would be sent all these slips I needed.  In November I did get a letter from them, but it had no slips at all.... it simply said to open a CRA account and get them from there.  Neither of us Has an account, and to Open one we both would have had to have submitted our last years taxes....  It was very stressful situation.  The only way I almost solved all of this was that I managed to contact all the pension  offices for both of us and after speaking to many people there, with the right information they almost all sent us another copy of the much needed slips.  So yes.... this is a very involved issue by now.  

Do I start with my husbands taxes.. if so do I list him as married... and if so where do I click a box saying I am the one doing his taxes and does Ufile know that I neither of us can be able to claim any joint benefits?  It would have been much easier if we had moved back to Canada before he had major surgery but it was essential the surgery was immediate and we could not have waited for the 3 month waiting period to be on Canadian health care.  Sorry to make this so long, but its only way you can know just how confusing it will be unless I get a couple of answers on where to start and if each of us is able to use efile for this.  Thank you for any help you can offer, it will be very much appreciated.  I will again look at the publication on preparing returns and perhaps it may help further.  Most important though at this point is to know Where on UFile to I enter his and my info without UFile still treating our taxes as as if we were both married and able to claim each others benefits.  Especially important to make sure I can still claim all the medical bills that I have receipts for.... they are All in Spanish... I have already taken a few hours to find the exact amounts the Pesos to Canadian dollars were on the exact date of each of the receipts... big job but saves Revenue Canada tons of time 

Thank you for dealing with my issues... all made much harder because of Covid and long wait times, but so necessary to finalize this outstanding issue.

[TheTaxSmith]

Hi DCB. Lets back up a bit and take this slow.

When was the last time you filed a Canadian return?

Did you complete a Form NR73, Determination of Residency Status (Leaving Canada) for the year you left? Perhaps review the following CRA guide

https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/information-been-moved/determining-your-residency-status.html