Which Tax Credits Can You Claim on a Deceased Person's Final Return in Canada?

If you are the executor, the final T1 is your chance to use the credits and deductions the person was entitled to. Many people expect the credits to be cut back because the year ended early, but the rules are more generous than that.

This article walks through the main credits, the limits on splitting claims, the costs you cannot deduct, and short summaries of medical expenses and donations. Always check the year of death, because dollar amounts change.

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

Personal credits are generally claimed in full

Credits on lines 30000 to 30450 and 30500, including the age amount, can be claimed in full on each return filed. They are not prorated for the year of death.

There is one exception. If the deceased was resident in Canada for only part of the year, the personal amounts are prorated by the days of Canadian residence divided by the days in the year.

Limits when you split claims across returns

Sometimes an optional return is filed alongside the final return, such as a rights or things return, a partner or proprietor return, or a graduated rate estate return. Claims can be split between these returns, but the total of the claims cannot be more than what would have been allowed if only the final return were filed.

The disability amount (lines 31600 and 31800) has its own limit: the total claimed across all returns cannot exceed the allowable amount for the calendar year.

• Optional returns are not required, and they may reduce or eliminate tax.
• They are only available for eligible income sources and time periods.
• Plan the split before filing so the combined total stays within the limit.

Costs you cannot deduct

Funeral expenses, probate fees and estate administration fees are not deductible. It is common to assume these costs reduce the tax owing, so keep this in mind when estimating the balance.

Medical expenses and donations in brief

Medical expenses on the final return can cover any 24-month period that includes the date of death, if they are not claimed elsewhere. For tax year 2025, the claim is the amount above the lesser of $2,834 or 3% of net income on line 23600. A refundable medical expense supplement of up to $1,504 may be available if there is an amount on line 21500 or 33200. Receipts must be attached.

Donations on the final return are limited to 100% of net income on line 23600. Any excess can be claimed on the previous year's return, up to 100% of that year's net income. Donations cannot be carried forward from a final return to a T3. Our dedicated articles on medical expenses and donations cover these in more detail.

Canada Workers Benefit

Canada Workers Benefit eligibility runs only up to the date of death. It is claimed for the final year on line 45300 of the final return.

What to do next

• Confirm the year of death, because dollar figures are indexed each year.
• Check whether the deceased was resident in Canada for the whole year or only part of it.
• Decide whether any optional returns will be filed, and track the combined claims.
• Gather medical receipts for the 24-month period and donation receipts.
• Leave funeral, probate and administration costs out of your deductions.
• Consider asking a lawyer or accountant to confirm how to split claims.

Frequently asked questions