What income tax returns must an executor file for the deceased in Ontario?
Filing income tax returns is one of an executor's key duties. At minimum, the executor must file the deceased's final T1 income tax return covering the period from January 1 of the year of death to the date of death. Any outstanding returns from prior years that were not filed must also be completed.
If the estate earns income after the date of death — rent, dividends, interest, capital gains on the sale of assets — that income belongs to the estate, not the deceased. The executor may need to file one or more T3 Trust Income Tax and Information Returns to report this estate income and pay tax on it.
There are also optional returns available to executors that can sometimes reduce the overall tax burden — such as filing a separate "rights or things" return for certain income earned but not yet received by the deceased. An estate accountant or tax professional can advise on which optional returns are worthwhile.
Key takeaways
- File the deceased's final T1 return covering the year up to the date of death.
- All unfiled prior-year returns must also be completed.
- Estate income earned after death is reported on a T3 Trust return.
- Optional returns may reduce total tax — consult an accountant familiar with estate taxation.