Question for the group. My mother passed away on Feb 11th. I have her 2022 return ready to file and will do so very soon. need to compile some details for the final return up to Feb 11 but her estate is very simple. Can I use the 2022 T1 return to file the final return? I don’t want to wait until the 2023 return comes out.
I’m thinking you mean she passed away feb 12, 2023?
If so yes you can use 2022 tax form. Just attach a note indicating her death date etc. You should also include death certificate, last will and assets list to every return you file with the cra. It makes thing easier for them.
Also you cannot efile those returns.
If she passed away in 2023 then you’ll need to be filing a 2022 T1 now and then next year filing the 2023 T1. You’re not able to lump in another year on a prior return.
If she passed in 2022 it’s just a T1. If there’s still income in 2023 then it would go on a T3 possible, depending on what the income is and if there’s a spouse etc.
“My mother passed away on Feb 11th.”
Condolences on your loss.
However, a “son or daughter” of a deceased should do ABSOLUTELY NOTHING to do with the tax or legal affairs of the deceased.
This could amount to “intermeddling” in the estate, and create personal liability.
Please refer your concerns to the EXECUTOR or ADMINISTRATOR (Personal Representative) of the Deceased.
" her estate is very simple."
This is NEVER true of anything to do with estates or taxes.
The 2022 T1 is due on 11 August 2023
The 2023 T1 is due on 30 April 2024.
Any T3 that would need to be designated a GRE would have a due date that would be evaluated by the Executor, in consultation with the Executor’s CPA.
Since this situation impacts a MINIMUM of THREE tax returns, and possibly FIVE or more, some of which information the EXECUTOR definitely will not have yet, using “haste” has a VERY high probability of increasing both costs and increasing Liability.
ONLY the (professional) person actually looking at the file can determine who is responsible for what, and what should be done.
Generally, Executors are enormously reluctant to “try his alone” because of the enormous potential personal liability, and will hire a professional accountant (ie CPA)
Attempting to do any “early filings” is unlikely to speed things up, and has significant potential to slow things down.
As stated, she recently passed away (a month ago)
I have the 2022 T1 ready to file (just some last minute items to check)
I will need to file a 2023 T1 for Jan 1 - Feb 11.
Onviously I understand that things need to happen before filing but I do not plan on waiting until April of 2024.
Then the T3 trust return kicks in
I am an accountant and the Executor of the estate.
I simply wanted to know if I can use the 2022 T1 to file the 2023 taxes (Jan 1-Feb11)
I believe Rene answered the question.
@dawna777 Condolences for your loss.
I wouldn’t because the rates will be slightly different. You will end up filing an adjustment next year anyway. Yes the estate would kick in for any income received after Feb 11 but you could also file a Rights and Things return if that income qualified (declared dividends, not paid…etc).
At risk of getting slaughtered by Joe… If it’s a tiny bit of interest income received after Feb 11 and there’s only one beneficiary (surviving spouse), I’ve put it on the beneficiary’s return instead of filing a T3 and allocating it back out.
Treat the CPP death benefit similarly? Leave it on the final T1.
From “Versa via protaxcommunity.com” <firstname.lastname@example.org>
Date 2023-03-16 11:06:21 AM
Subject [protaxcommunity.com] [Tax Topics] Terminal Return
You can’t report the CPP death benefit on a final tax return. It is not “earned” until the individual passes away. It must be reported on a T3 Return or on the return of one of the beneficiaries.
Kevin’s right. The CPP death benefit goes on the T3 but if no T3 is filed, it can go on the beneficiary’s return.
Just to clarify, the estate would kick in as of February 12th regardless when you file the Final return. Filing it early won’t change anything. I would definitely suggest waiting and filing when the appropriate forms are ready (after February 2024) because that’s when CRA’s systems are set up to assess 2023 tax returns. Also it will give you more time to determine what income goes where and if an estate return needs to be filed or not. Remember that OAS payments received after death can go on Rights or Things.
In the meantime, as @ReneBouchard suggested, send CRA a letter with the will and death certificate so their records are updated and it doesn’t cause delays for next year.