Final Return Deadline When Death Occurred November or December in Canada

If the person died between November 1 and December 31, the final return is due 6 months after the date of death, on the same calendar day. For a death between January 1 and October 31, the final return is instead due April 30 of the year following the death.

This article explains how the six-month rule works, why the payment date can still arrive first, and which exceptions apply. If you are unsure which date governs, a lawyer or accountant can confirm it against the facts.

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

How the six-month rule works

If the person died between November 1 and December 31, the final return is due 6 months after the date of death, on the same calendar day. The Income Tax Act reflects this: where an individual dies after October and on or before the normal filing due date, the legal representative must file by the later of the normal due date and the day that is 6 months after the day of death.

In practice, you count forward six months from the date of death and land on the same day of the month. Once you have that date, check whether it falls on a weekend or holiday, and whether any of the exceptions below apply to your situation.

When is any balance due?

This is where people get caught. The payment date for a balance owing does not move with the later filing date. The CRA says the payment due date does not change, and you may need to pay before filing to avoid interest. Overpayments are generally refunded once the return is assessed.

Because the exact payment date can depend on the situation, confirm it before relying on the filing date. Estimating the tax early and paying what you can reduces interest, since interest compounds daily on unpaid amounts from the day after the due date.

Exceptions to check

• Self-employed: if the person, or a spouse or common-law partner living with them, ran a business on the date of death, a death from January 1 to December 15 means a June 15 deadline the following year. For a death from December 16 to December 31, the return is due 6 months after death. Payment is still not extended.
• Tax shelters: the self-employed extension is not available where business expenditures were mainly the cost of tax shelter investments.
• Weekends and holidays: if the due date falls on a weekend or CRA-recognized holiday, a return is on time if received or postmarked by the next business day, and a payment is on time if received the first business day after.
• Unfiled earlier returns: if a T1 for a year before the year of death was not filed, the legal representative must make sure it is filed, and other prior-year returns already due keep their original dates.

Late filing consequences

A late final return with a balance owing carries a penalty of 5% of the balance plus 1% of the balance for each full month late, up to 12 months. It may be higher if a late-filing penalty was assessed on the deceased's return in any of the 3 previous years. Filing on time avoids the penalty even if the balance cannot be paid in full.

Interest also applies to late-filing penalties. The CRA may cancel penalties or interest where a late filing was caused by circumstances beyond your control.

What to do next

• Write down the date of death and calculate the six-month date, then check for a weekend or holiday.
• Find out whether a business was operating on the date of death.
• Notify the CRA of your role as legal representative before accessing the deceased's tax records.
• Send the death certificate and a document naming the executor, each showing the deceased's SIN.
• Estimate any tax owing now and confirm the payment date, since it does not move with the filing date.
• Collect slips such as T4, T5, T4A(P) and T4(OAS).
• Speak to a lawyer or accountant if you are unsure of any date.

You do not need to wait for a court process to file the final return. The CRA accepts a will naming an executor or letters of administration, and Form RC552 is available where no executor exists or an appointment is pending.

Frequently asked questions