Tax Slips at Death in Canada — T4A, T5, T3, and Why They Arrive Late

When a Canadian dies, the family often expects to "wrap up the taxes" within a few months. The reality is different. The terminal tax return is one of the longest-running pieces of estate administration — typically not filed until several months after death, with the CRA clearance certificate often arriving 12 to 24 months later. Most of the delay is structural: tax slips are issued on a schedule that runs through March of the year following the death, and the return cannot be properly filed until all slips have arrived.

This guide explains what slips to expect, when to expect them, what they represent, and how the terminal return process actually works.

Tax slips — what arrives when #

Most Canadian tax slips for income paid during the calendar year are issued by February 28 of the following year. T3 slips (trust income) are issued by March 31. This is the structural reason executors typically can't file before spring.

Common slips relevant to a deceased Canadian:

T4 — Employment income. Issued by the deceased's employer for any employment income earned during the year of death. Includes salary, wages, bonuses, and certain benefits. Usually available by late February.

T4A — Pension, retirement, and other income. Includes pension payments, retirement allowances, certain benefits. Issued by pension administrators by late February.

T4A(P) — CPP and QPP benefits. Issued by Service Canada for any CPP retirement, disability, or survivor benefits received. Usually available by late February.

T4A(OAS) — Old Age Security. Issued by Service Canada for OAS received. Usually available by late February.

T5 — Investment income (non-registered). Issued by banks and brokerages for interest and dividend income from non-registered (taxable) accounts. Usually available by late February.

T3 — Income from trusts and mutual funds. Issued by mutual fund and trust administrators. T3 slips often arrive in mid-to-late March, sometimes pushed to the end of March. This is frequently the slip that delays filing.

T4RSP — RRSP income or deemed disposition. For RRSP withdrawals made during the year, or the deemed inclusion of the full RRSP value on the terminal return for the RRSP (without spousal rollover).

T4RIF — RRIF income. For RRIF withdrawals during the year.

T5008 — Securities transactions. A summary of buy/sell transactions in non-registered accounts. Some institutions issue this; others provide a transaction history that the accountant uses to calculate gains/losses.

T5013 — Partnership income. If the deceased had partnership interests.

T2202 — Tuition and education amounts. If the deceased was a student.

The structural delay — why early filing usually isn't possible #

To file the terminal return correctly, the executor needs complete picture of:

• All income earned January 1 through the date of death
• All deemed dispositions at death (capital gains realized)
• All RRSP/RRIF inclusions
• All applicable deductions and credits

The tax slips provide most of this picture, and they arrive over February and March. T3 slips (mutual funds, trusts) frequently arrive at the end of March or early April.

Filing before slips arrive risks:

• Missing income that surfaces later, triggering reassessment
• Late filing penalties if amendments are needed
• CRA clearance certificate delays
• Executor personal liability if reassessment exceeds estate assets distributed

The practical pattern: wait until all slips are in, file the terminal return by the deadline, then begin the wait for assessment and clearance.

Terminal return deadlines #

CRA's deadlines for the terminal return:

Deaths January 1 — October 31: Terminal return due April 30 of the following year.

Deaths November 1 — December 31: Terminal return due 6 months after the date of death.

Self-employment income (deceased or surviving spouse): Filing deadline extends to June 15, but any tax owing is still due April 30.

These deadlines are statutory. Late filing triggers penalties (5% of tax owing plus 1% per complete month late, to a maximum of 12 months, with higher penalties for repeat occurrences).^[4] If a deadline cannot be met due to incomplete slips, request a filing extension or estimate and amend.

The terminal return vs. the estate T3 #

Two different returns operate at and after death:

Terminal T1 return. Covers the deceased's income from January 1 to the date of death. Filed by the executor. The deceased is the taxpayer.

T3 estate trust return. Covers income earned by the estate AFTER the date of death — investment income on estate assets, rental income, sales gains, etc. Filed annually until the estate is wound up. The estate is the taxpayer.

For the first 36 months after death, the estate qualifies as a "Graduated Rate Estate" (GRE) and benefits from graduated tax rates similar to an individual's, rather than the top marginal rate that applies to other trusts. GRE status requires the estate to designate itself on its first T3 return.

Optional separate returns #

The Income Tax Act allows the executor to file up to three additional optional returns alongside the terminal T1:

• Rights or things return — for income earned but unpaid at death (e.g., unpaid salary, declared but unpaid dividends, OAS receivable)
• Return for income from a graduated rate estate — for certain trust income flowing through
• Return for proprietorship business — for business income in a sole proprietorship

Each optional return allows the deceased to claim a separate set of basic personal amount credits, potentially reducing tax. A tax accountant familiar with estate work can evaluate whether optional returns are beneficial.

The CRA clearance certificate #

After all returns are filed and assessed, the executor applies for a clearance certificate (form TX19). This certifies that the deceased's and the estate's tax obligations are satisfied.

Why it matters: Without clearance, the executor may be personally liable for any subsequent reassessment. If the executor distributes assets to beneficiaries and CRA later reassesses additional tax, the executor's own assets may be exposed.

How long it takes: 6 to 12 months from application is typical. Complex estates can take longer.

Practical implications: Distribution of major estate assets to beneficiaries should generally wait until clearance is received. Some executors distribute interim amounts (with explicit beneficiary indemnification) while waiting; this is a risk decision that should involve legal advice.

What we focus on at It's Simple Will #

The Life Discovery Kit captures the deceased's tax preparer contact, recent tax returns, and pension/income source information — giving the executor a head start on what slips to expect from which institutions. This dramatically reduces the burden of identifying income sources from cold during the first weeks of administration.

See our companion guides: handling a loved one's finances after death, capital gains at death in Canada, and RRSP at death — terminal tax mechanics.