Medical Expenses on a Final Return: The 24-Month Window in Canada

Medical costs often pile up in the last months of a person's life, and some bills arrive after death. As the legal representative, you may wonder which of these can reduce the tax on the final return.

For a person who died in the year, a special rule ties the claim period to the day of death. This article explains the 24-month window, how the claim is calculated, who files and when, and what to gather before you file.

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

How the 24-month window works

For a person who died in the year, medical expenses can be claimed if they were paid within any period of 24 months that includes the day of death. Whether a particular bill paid by the estate after death counts depends on your situation, so it is worth confirming with a lawyer or accountant.

You can choose the 24-month period that gives the best result, as long as the expenses are not claimed elsewhere.

How the claim is calculated

The claim is the amount above the lesser of $2,834 or 3% of net income (line 23600), based on all returns filed for the year of death. Those figures are for the 2025 tax year. The dollar amount is indexed each year, so check the figure for the year of death.

Receipts must be attached, and expenses can be split across returns.

• Deceased's own expenses: these are claimed as medical expenses on the final return, within the 24-month window.
• Dependants: expenses the deceased paid for a dependant (other than a dependent child under 18) who died in the year are claimed on line 33199.
• A refundable medical expense supplement of up to $1,504 may be available if there is an amount on line 21500 or 33200.

Splitting claims across returns

Optional T1 returns are not required and may reduce or eliminate tax, but they are only available for eligible income sources and time periods. If you file optional returns as well as the final return, the total of the claims cannot be more than what would have been allowed if only the final return were filed. Spreading medical expenses across returns can help use the credit well, but it must not double count anything.

Funeral expenses, probate fees and estate administration fees are not deductible. They are not medical expenses for this purpose.

Other credits that interact

Credits on lines 30000 to 30450 and 30500, including the age amount, can be claimed in full on each return filed and are not prorated for the year of death. The exception is a person resident in Canada for only part of the year, whose personal amounts are prorated by days of Canadian residence.

The disability amount is different: the total claimed across all returns cannot exceed the allowable amount for the calendar year.

Who files the return, and when

The legal representative is usually the executor named in the will (in Québec, the liquidator). They must notify the CRA of their role before accessing the deceased's tax records, and they are responsible for ensuring returns are filed and balances owing are resolved.

If the person died between January 1 and October 31, the final T1 return and any balance owing are both due April 30 of the year following the death. 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. Different dates apply if the deceased, or a spouse or common-law partner living with them, ran a business. The payment date for a balance owing does not move with the later filing dates, and you may need to pay before filing to avoid interest.

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. 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, and it also applies to late-filing penalties.

To prove your role, the CRA accepts a death certificate or funeral director's statement of death, and a legal document naming the executor or liquidator, such as the complete will or the court document appointing the representative. Each document must show the deceased's SIN. If there is no will or executor, or a court appointment is pending, Form RC552 lets a person manage CRA matters only.

What to do next

• Collect receipts for medical costs paid in the likely 24-month period, including bills paid by the estate after death.
• Note who each expense was for, since dependants are claimed on a different line.
• Check that none of the expenses was claimed on another return.
• Look up the current year's threshold before you calculate.
• Confirm the filing and payment dates for the date of death, and notify the CRA of your role as legal representative.
• Ask an accountant or lawyer if you have optional returns or a large estate.

Frequently asked questions