StudioTax supports preparing a final return (return of a deceased person). From a software perspective, it is processed as a regular return with the addition of a date of death.

Important: Printing and Mailing Required

As per CRA rules, a final return cannot be transmitted electronically via NETFILE. You will need to print the return and mail it to the CRA.

The surviving spouse’s return, however, can still be filed online using NETFILE.

Linking the Returns

The deceased’s return can be linked with the surviving spouse’s return, allowing you to take full advantage of any transfers between the two returns, such as pension income splitting.

Step-by-Step Instructions

Step 1: Create Both Returns as Usual

Start by creating both returns without entering the date of death and without changing the marital status. Use the previous year’s returns to create the new year’s returns as you normally would, and link them together as a spousal return.

This ensures both returns are properly linked before the date of death is applied.

Step 2: Set the Date of Death on the Deceased’s Return

Once both returns are created and linked, open the wizard for the deceased person’s return and enter the date of death.

StudioTax will automatically:

• Update the surviving spouse’s marital status to Widowed
• Keep the two returns linked

Step 3: Complete Both Returns

With the returns still linked, you can apply any available transfers between them (such as pension splitting) as you would for any spousal return.

Step 4: Print and Mail the Final Return

When the final return is complete, use the Print function to generate a copy of the return, then mail it to the appropriate CRA tax centre.

The surviving spouse’s return can be filed online as usual once it is complete.