Line 114 - CPP or QPP benefits

Report the total Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) benefits in box 20 of the deceased's T4A(P) slip, minus any amount in box 18.

If the deceased received a lump-sum CPP or QPP benefit, or a CPP or QPP disability benefit, see line 114.

Do not report a CPP or QPP death benefit shown in box 18 on the final return. This amount will be reported on a T3 Trust Income Tax and Information Return for the estate unless the death benefit is payable to the beneficiary in the year it is received by the estate. In this case a T3 slip will be issued in the beneficiary’s name and the beneficiary will be required to include the amount on their T1 return. For deaths occurring after 2015, the resulting estate cannot elect to have the benefit taxed in the estate if it is actually income of the beneficiary in the year, and the estate otherwise has taxable income.

Where the CPP or QPP death benefit is the only income of the estate and a T3 return is not required to be filed, the death benefit can be reported directly on the T1 return of the beneficiary.

A CPP or QPP death benefit will generally not be taxable where the recipient deals at arm's length with the estate (is not the beneficiary of the estate) and the benefit is received in the following circumstances:

• the amount is received by a taxpayer who paid the deceased's funeral expenses;
• the amount does not exceed the actual funeral expenses; and
• the deceased has no heirs and there is no other property in the estate.

For more information on CPP or QPP, see Line 114.

Forms and publications

• General Income Tax and Benefit Guide
• Guide T4011, Preparing Returns for Deceased Persons
• T3 Trust Income Tax and Information Return

Date modified:

2017-01-04