I have a client who’s dad passed away in 2019. She had an accountant prepare the Estate return. As Executrix she took the 5% fee. She received $10,000 in total. That accountant has told her she does not need a T4 issued for it, she can just claim it as “Other Income”. Is this correct, or does she need a T4 slip as I thought she has to have the CPP and Income Tax deducted from the $10,000. If she does need a T4, I know both the “employer and employee” portion of CPP needs to be paid but how is the tax withheld calculated?
Her father did own a business when he passed. She is not in business as a professional Executrix.
Any help is greatly appreciated.