Filing the Prior-Year Return When the Person Died Before Filing It in Canada

Many people die in the early months of the year, before they have filed the return for the year just ended. That leaves the family with a question: is last year's return still needed, and when is it due?

The short answer is that it usually is, and the deadline can be different from the usual April 30. This article explains the pattern in general terms. A lawyer or accountant can confirm the dates for your situation.

This article covers Canadian federal tax law, which applies in every province.

The usual deadlines for the final return

For a death between January 1 and October 31, the final T1 return and any balance owing are due April 30 of the following year. For a death between November 1 and December 31, the final return is due 6 months after the date of death, on the same calendar day.

If the person was self-employed, or their spouse or common-law partner living with them ran a business on the date of death, different rules can apply to the final return. Ask an accountant whether that applies.

When the prior-year return is also due

A final return must be filed for every person who dies. If a T1 return for an earlier year was not filed, the legal representative must make sure it is filed.

The CRA gives this example: the person died in 2026 on or before the 2025 T1 filing due date, and the 2025 return was not filed. The 2025 return and any balance owing are due 6 months after the date of death, on the same calendar day. The same pattern applies to other years.

Other prior-year returns that were already due keep their original filing and payment dates.

Two returns, not one

In the early-death case, you file the unfiled prior-year return and also a final return for the year of death. A single final (2026) return is also required, so two returns are needed.

If a due date falls on a weekend or CRA-recognized holiday, a return is on time if received or postmarked by the next business day. A payment is on time if received the first business day after the due date.

If a surviving spouse also files

The survivor's own 2025 return has the same filing due date as the deceased's 2025 return. However, any balance the survivor owes must still be paid by April 30, 2026 to avoid interest. The survivor's payment date therefore does not move, even though their filing date does.

For other years, check the date by applying the same pattern, and confirm with the CRA or an accountant.

Late filing, interest and relief

• The penalty for a late final return with a balance owing is 5% of the balance plus 1% of the balance for each full month late, up to 12 months.
• The penalty may be higher if a late-filing penalty was assessed on the deceased's return for any of the 3 previous years.
• Filing on time avoids the penalty even if the balance cannot be paid in full.
• Interest is compounded daily on unpaid amounts from the day after the due date until paid, and interest also applies to late-filing penalties.
• The CRA may cancel penalties or interest if a late filing was caused by circumstances beyond your control.

What to do next

• Confirm the date of death and whether last year's return was filed.
• Notify the CRA of your role as legal representative and send documents showing your authority, such as a death certificate and a legal document naming the executor, like the will or a court document confirming your appointment.
• Find the information slips for both years.
• Calculate the due date for each return and note any balance owing.
• File on time even if you cannot pay in full.
• Speak to an accountant or lawyer before distributing estate property, because a clearance certificate is dealt with only after returns are filed and assessed.

Frequently asked questions