Deceased Returns

Updated: 2023-05-15

If a taxpayer died during the year, enter the date of the death on the Info worksheet. This is located in the Credits section, under the Life events subheading.

Enter the name and contact information of the Legal representative and then select the Type of return from the drop-down menu.

Screen Capture: Life events section on the Info worksheet

This will then trigger pro-rated calculations and other required forms in the taxpayer and the spouse's return (if required).

Does the Final T1 Return Include Income From a Section 104(13.4) Election?

The Canada Revenue Agency (CRA) requires the answer to this question in the EFILE record. It tells the CRA that an election was made to include income in the final return rather than in the trust return under subsection 104(13.4). It doesn't change anything within the TaxCycle return.

Screen Capture: Subsection 104(13.4) election on the Info worksheet

Where Can I Find Out More About This Election?

The CRA included information about subsection 104(13.4) in the T3 Trust Guide, section "Income to be taxed in the trust".

Since you can EFILE the T1 return with this election in it, you will need to mail in the letter required for the T1 final return. The letter must contain all of the following information:

  • A heading identifying the letter as a subsection 104(13.4) election
  • The T1 and T3 account numbers
  • The income amount that was allocated in the T3 slip and reported on the final T1 return of the deceased beneficiary
  • The signatures, names and addresses of both the trustee(s) and the executor(s) for the deceased beneficiary

For more information about completing a final T1 return, see the CRA's page on Preparing Returns for Deceased Persons.