Filing and payment due dates

Final Return

The due date to file the Final Return and pay a balance owing is:

• April 30 of the year following the death (if the death occurred between January 1 and October 31 inclusive)
• 6 months following the death, on the same calendar day as the date of death (if the death occurred between November 1 and December 31 inclusive)

Optional T1 returns for someone who died

Find out if there is eligible income to report on any of the optional T1 returns.

The due date to file the optional T1 returns and pay a balance owing are:

Return for Rights or Things

• You must file this return by the later of:
  • One year after the date of death
  • 90 days after the Notice of Assessment or Reassessment for the Final Return is sent
• You must pay a balance owing by the same due date as the Final Return, generally April 30
  • In some cases, you can delay paying part of the amount owing from a Return for Rights or Things

Return for a Partner or Proprietor

• Follows the same filing and payment due dates as the Final Return
  • The filing due date may be later if the person who died or their spouse or common-law partner operated a business

Return for Income from a Graduated Rate Estate

• Follows the same filing and payment due dates as the Final Return

Returns for tax years before the year of death

If the person who died was paying tax by instalments

No further instalments have to be made after the date of death. The only instalments that have to be paid are those that were due but not paid before the date of death.

For more information about how instalments work, refer to Paying your income tax by instalments.

T3 Trust Income Tax and Information Return (T3 Return)

The due date to file a T3 Return and pay a balance owing is:

• 90 days after the trust's tax year-end or wind-up date

Determine the tax year-end or wind-up date for the estate

• Graduated Rate Estate (GRE) tax year-end: you can establish the end of a GRE’s first tax year on any date up to 1 year after the date of death
• GRE wind-up date: in the year a GRE is wound up, the GRE’s tax year typically ends with the final distribution of the property of the estate
• Testamentary trust that is not a GRE: the trust has a tax year-end of December 31, which also applies in the year of wind-up

Indicate a Graduated Rate Estate's (GRE) tax year-end on the first T3 Return

The end of a GRE's tax year should be decided by the legal representative indicated in the first T3 Return for the GRE. The end of the GRE's tax year can be any date up to one year after the date of death.

Public holidays and weekends can affect due dates

When a due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it, or if it is postmarked, on or before the next business day.

Your payment is considered on time if it is received on the first business day after the due date.

File returns early

If you cannot get a return for the year of death, use a blank one from a previous year.

Write the tax year at the top of the latest available version of the T1 or T3 Return. It will be assessed according to the latest year's tax rules. You can request a reassessment in the following year.

Penalties on late filing and interest on late payments

Penalties if you file a return late

If you file a return late and there is a balance owing, the CRA will assess a late-filing penalty.

The penalty is 5% of any balance owing, plus 1% of the balance owing for each full month that the return is late, to a maximum of 12 months. The late-filing penalty may be higher if the CRA assessed a late-filing penalty on a return of the deceased for any of the 3 previous tax years. The CRA will also assess interest on both the balance owing and any penalty.

Even if you cannot pay the full amount owing by the due date, you can avoid the late-filing penalty by filing the return on time.

If a T3 Return is filed late, the trust may be subject to an alternative penalty even if there is no balance owing. This alternative late-filing penalty is $25 a day for each day the return is late, from a minimum of $100 to a maximum of $2,500.

Interest is charged if you do not pay a balance owing

If you do not pay the amount in full, the CRA will charge compound daily interest on the unpaid amount from the day after the due date to the date you pay the amount owing.

For more information on how to pay a balance owing, refer to File the returns.

Election to delay payment of income tax

In some cases, you can delay paying part of the income tax due. For instance, you can delay paying part of the amount owing on income reported on a Return for Rights or Things, and the deemed disposition of capital property. Remember that the CRA charges interest on any unpaid amount, from the day after the due date to the date you pay the amount in full.

If you want to delay payment, you will have to provide the CRA with acceptable security for the amount owing. You also have to complete Form T2075, Election to Defer Payment of Income Tax, Under Subsection 159(5) of the Income Tax Act by a Deceased Taxpayer's Legal Representative or Trustee. For more information, call 1-888-863-8657.

Cancel or waive penalties or interest

In certain situations, the CRA may cancel penalties or interest if you file the return late because of circumstances beyond your control. You can request to cancel or waive penalties or interest.