Filing for 2020 return for a deceased taxpayer and surviving spouse

[Marilou]

I had forwarded the Combined 2019 Ufile data into the 2020 Ufile software. I have managed to define the deceased taxpayer (head of the family) and also have changed the status of the surviving spose to "Taxpayer became widowed". 

On the deceased Taxpayer, it is asking for the type of return during the year of death. Do I choose "Final return" or "Deceased taxpayer (next year memo)" ? What's the difference?

Also, is this the right way to do it? I have read in other forums that the widowed taxpayer should file a return separately.

[TheTaxSmith]

Hi Marilou. You select "Final return". If the taxpayer passed away in 2021 before filing the 2020 return you would use the second option.

[Marilou]

Thank you so much! 

[Marilou]

Another question please... The deceased taxpayer has tax forms that are addressed to : the Estate of xxxx and also has a tax form for a company pension that he received up to the date of his death which was also addressed to his Estate. His OAS is just addressed to himself. Am I just putting in all the income on these tax forms in his final return and doesn't to report them separately? 

[TheTaxSmith]

Hi Marilou.  The amounts will usually be reported on the Final return. However any amounts that were received after death that were owing before death can be reported on a separate return. For instance. OAS and CPP are received at the end of the month. If the date of death was before those amounts were received you can file a Rights & Things return for the amounts received after death. That can reduce the income tax to pay or increase a refund.

The fact that the address is to the Estate really is meaningless for tax purposes.

There are some considerable tax advantages to be achieved when dealing with a deceased persons returns.

[Marilou]

Thanks again ! 😀

[MGB]

Can I use Ufile to file my deceased father's final return?   I have prepared it all on ufile, but am getting an error message when I try to file that says "deceased".   But the government instructions say I can efile this return.  

[MGB]

Thanks, But the CRA document, T4011, Preparing Returns for Deceased Persons, page 11, Chapter 2, Final return, first paragraph says " The final return can be E_filed or paper filed."  

Based on some of the other comments I'm seeing this may be new this year?  

[C.J.]

Where do I enter the $2500 CPP death benefit on the surviving spouse's  income tax form in Ufile when received in the same year

[Curmudgeon]

21 hours ago, MGB said:

Thanks, But the CRA document, T4011, Preparing Returns for Deceased Persons, page 11, Chapter 2, Final return, first paragraph says " The final return can be E_filed or paper filed."  

Based on some of the other comments I'm seeing this may be new this year?  

There are two electronic filing systems: Netfiling and Efiling. Tax professionals use Efiling, individuals on software like UFile, Netfile. The CRA does not allow final returns to be Netfiled. You don't have to print out the complete return, only those pages that have the designation at the top of the page. Then mail them in.

[MGB]

Curmudgeon, 

Thanks so much.  I didn't realize there was a difference in that terminology.  So paper it is 🙁

[Zina]

I am having issue with transimiting 2020 return for a deceased person using netfile through Ufile software. I selected all the applicable details for Final Return and it is giving me an error that that Return cannot be transmited as it is for a deceased person. see below screenshot

can someone help?

[Zina]

according to the CRA website, we can file electroniclly for deceased person, so is the issue with Ufile or the regulations are not updated online?

 

[clw]

Zina, have a look at Curmudgeon’s April 21st message. You cannot Netfile a deceased person’s return, only e-file works if you are a tax preparer.

[petrarob]

On 3/9/2021 at 9:08 PM, TheTaxSmith said:

Hi Marilou.  The amounts will usually be reported on the Final return. However any amounts that were received after death that were owing before death can be reported on a separate return. For instance. OAS and CPP are received at the end of the month. If the date of death was before those amounts were received you can file a Rights & Things return for the amounts received after death. That can reduce the income tax to pay or increase a refund.

The fact that the address is to the Estate really is meaningless for tax purposes.

There are some considerable tax advantages to be achieved when dealing with a deceased persons returns.

When you want to file a "rights and things" return for a deceased person how do you go about it, do you open another tax return for the deceased ,after doing the FINAL RETURN,  and enter the OAS and CCP or QPP amounts that are received at the end of the month the person passed. . how do you split the non-refundable tax credits such as the Age Amount , disability amount etc. For my case the deceased would only have one month (DECEMBER) of income to declare in the "Rights and Things" and thus would only need the Basic Amount to get zero tax owed......

[TheTaxSmith]

The software handles that correctly. But a Rights and Things is a separate return with separate deductions. Best to paper file the Rights and Things. Expect problems from CRA but if you indicate in the Rights and Things return the split for up to death and after death for the income you will be ok. In the year of death you get to double up on some non refundable credits, therefore you complete a Final return as well as a Rights and Things return.

[Geo123]

Hello petrarob,

For a Deceased Return Rights and Things you could use our professional product DTMax ;

T1: https://www.thomsonreuters.ca/en/dtprofessionalsuite/products/dtmax.html