Sorry for your loss. If you are speaking of the one time payment, please see the Canada Revenue Agency (CRA) for information.
Not taxable in certain circumstances
A CPP/QPP death benefit will generally not be taxable if the recipient is not the estate or a beneficiary of the estate, and all of the following circumstances apply:
- The taxpayer who received the death benefit paid the deceased's funeral expenses
- The amount of the death benefit is not more than the funeral expenses
- The deceased has no heirs, and there is no other property in the estate
To clarify further information, please contact the CRA by calling them at 1-800-959-8281.
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