Taking Care of Tax Matters for a Deceased Individual

Deceased Taxpayer tax return filing

When a person passes away they often leave a will as well as someone in charge of their affairs. Part of these responsibilities may be the filing of their last tax return.  If they had been current with their taxes then the tax return required will be applicable to the year that they passed away in.

This is a very stressful time and even with a simple estate to handle it can be very perplexing and confusing.   Don’t hesitate to utilize the services of an experienced accountant to assist you with the tax filings and help you attend to the final tax matters.

There are several different types of tax returns that apply when an individual has passed away, and you want to be sure that you are filing the right tax return.

There is the final return which must always be filed in the case of anyone passing away, then there are 3 optional returns.   These optional returns are not necessary to be filed to comply with the law but there may be some benefit to the estate for doing so.

When filing some of the optional returns it may put the tax situation in a position where less tax is paid.   In some cases some amounts can be claimed more than once, or the amounts may be eligible to be split between more than one return.   There is specific criteria that must be met when filing any of these types of tax returns and they really can become quite complex.  This is really when you want to rely on the expertise of accounting professional.

The types of optional returns are: Returns for rights or things, return for a partner or proprietor, or return for income from a testamentary trust.

Depending of what the financial circumstances were of the individual who passed away, even the Final return which is mandatory can be difficult to complete.  It entails filing of income for the year up to the date of death, then determining if there is any income that has been earned after the death. This may be applicable in respect to trust income tax. If this is the case then additional forms have to be completed to go along with the return.

If you decide to see a Toronto accountant to assist you with the final tax matters make sure you take all of the financial documentation to him along with a copy of the will and death certificate, and be prepared to answer any additional questions related to the finances of the deceased individual who you are acting on behalf of.

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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


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The information provided here and throughout the site of TorontoAccountant.CA is intended for general tax information only, and should not be misconstrued as a legal source of information regarding your tax situation, or be used for any other purposes other than for general information.
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