Print this page Forward this document    Preparing the return of a deceased taxpayer

If your client was deceased during the last tax year, his/her new civil status must be taken into account when preparing the next tax return.

  • Changing the civil status

    Enter the information pertaining to the change in civil status with the keyword StatusChange, in the file of the deceased taxpayer. Then enter the date of death, which will be printed on the first page of each return filed.

    You do not have to change the client's civil status at the date of death.

  • Address

    In the client's file, enter the address of the estate's administrator to replace that of the deceased taxpayer. If, however, you would rather use the address of your firm, you do not have to modify the address of the deceased. Instead, simply use the keyword Mail-Address.

    DT Max will automatically enter the words Estate of before the name of the deceased taxpayer, on the first page of the return.

  • If there is a surviving spouse

    Use the keyword Status to modify the civil status of the surviving spouse. Select Widow or any other status, as relevant.

    Enter the information pertaining to the change in civil status with the keyword StatusChange, where you will indicate the new civil status as well as the date of the spouse's death.

    Use the keyword Street to enter the current address of the surviving spouse, if it has changed.

  • If there is a dependant

    For Quebec tax purposes, DT Max will allocate the dependant amounts in consideration of the spouses' respective income.

    Use the keyword Transfer-OV in the dependant's file to modify the optimization.

  • Filing the final return and optional returns

    The keyword Return-Type is available in the StatusChange group to select the type of return to be filed.

    Once the relevant type of return is selected, DT Max will specify the corresponding tax provision in the top right-hand corner of the first page of the return: 

                                                      Federal   Quebec
Final return                                    blank     blank
Return for income from rights or things         70(2)     429
Return for income of a partner or proprietor    150(4)    681
Return for income from a testamentary trust     104(23)d) 1003

    Enter the final return information in the client's production file, and create a plan in DT Max for each optional return you may wish to file.

  • The year following death

    Separate the spouses in the database only in the year following the death. To do so, use the keyword Inactive in the file of the deceased taxpayer, and make sure that the option Deceased is selected.

    Keep in mind that an inactive family head prevents tax calculations for the entire family. To process a family in the year after the death of the family head, access the spouse's file and change the Relation entry to Family head. This will swap the former family head and spouse in the family.

June 15, 2004