How do I access form TP-646 in ufile?

[Anita Pelletier]

Hello, I would like to enter a Death Benefit into the TP-464 form, as advised by the Gov't of Québec, but I cannot figure out how to access it in Ufile.

Any help would be appreciated. 

Anita P

[TheTaxSmith]

Are you asking about the Quebec pension plan death benefit (maximum of $2,500)which is taxable to the estate or the beneficiaries, or is it a a private plan death benefit where up to $10,000 can be exempt from tax?

[Mtl39]

Hi

I have a similar question regarding the death benefit in Quebec.  It is the 2500$ payment from Retraite Quebec.  It is addressed to the 'Heirs of the deceased'.  I read here that it should not be inputted into the deceased tax file - does this 'heirs' imply that I should add it to my mom's (widow) tax file?

Thanks

[TheTaxSmith]

The proper treatment would be to complete Estate tax returns and if beneficial flow through the death benefit to the beneficiaries tax returns, if however there is a single beneficiary both CRA and RQ will accept reporting on the beneficiaries returns instead. A death benefit can never be reported on the return of the deceased as it is not their income. So add it to the widows return unless you can achieve a lower tax amount by reporting it and paying tax on an estate return.

[Anita Pelletier]

On 4/14/2022 at 7:39 PM, Mtl39 said:

Hi

I have a similar question regarding the death benefit in Quebec.  It is the 2500$ payment from Retraite Quebec.  It is addressed to the 'Heirs of the deceased'.  I read here that it should not be inputted into the deceased tax file - does this 'heirs' imply that I should add it to my mom's (widow) tax file?

Thanks

Yes, that is correct.  I called the Revenu Quebec and they advised as follows: 

* The $2500 is claimed by the inheritors.  So yes, your mom.

* This can be done in either of 2 options.  1-Claim the $2500 in the Death Benefit box   OR 2- If the $2500 affects the tax owing, complete the form TP-646. 

But this is where I'm at a standstill. I do not know how to get to that form in Ufile.  I called customer service and they are not able to help me. 

Any ideas?

Thanks

[TheTaxSmith]

That is not a form in Ufile. It is an Estate or Trust tax return.  https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/tp-646-v/

 

[Anita Pelletier]

On 4/14/2022 at 7:48 PM, TheTaxSmith said:

The proper treatment would be to complete Estate tax returns and if beneficial flow through the death benefit to the beneficiaries tax returns, if however there is a single beneficiary both CRA and RQ will accept reporting on the beneficiaries returns instead. A death benefit can never be reported on the return of the deceased as it is not their income. So add it to the widows return unless you can achieve a lower tax amount by reporting it and paying tax on an estate return.

I understand this, and need to complete the TP-646 (Trust Income Tax Return).   BUT, I cannot figure out how to do that in Ufile.  Can you help?

Thanks

[Anita Pelletier]

2 minutes ago, TheTaxSmith said:

That is not a form in Ufile. It is an Estate or Trust tax return.  https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/tp-646-v/

 

Thank you,  so does this mean I complete the return, and simply enter the findings in the return on Ufile?  

Thanks

[TheTaxSmith]

You can't.  A trust return is a separate tax return and Ufile does not supply software for filing trust returns. You have to do it manually.

[TheTaxSmith]

You complete the trust return and then complete tax slips for the beneficiaries to flow the death benefit through the trust to have it taxed on the beneficiaries returns. Those slips will be entered on the individual beneficiaries returns as T3/RL-16 income.

[Anita Pelletier]

Thank you to TheTaxSmith.... I now understand!  

Have a good day!