Why is there no guidance on how to file a T1 Optional and a T1 Final? As I want to claim income earned prior to death and then income from an RSP payout upon death.

[annamolbak]

I prepared 2 returns which significantly reduced taxes owing than the initial return I prepared using Turbo Tax guidance for Final T1. Why does this option not come up when preparing the return I ended up paying for filing two returns.

[TurboTaxAniqua]

Sorry for your loss. After receiving the clearance certificate, the executor can prepare the deceased person’s final return. This document shows all the income received before death. The final return should include all usual income received prior to death, such as:

Earnings from work.

Pension or retirement payments.

Employment insurance benefits.

Investment earnings.

The final return must also include the deemed disposition of any capital property owned at the time of death. This will result in a capital gain or loss based on the cost to the deceased and the fair market value (FMV) at the time of death. The FMV of registered plans (such as RRSPs) must also be included in income unless they can be transferred to a spouse or other qualified beneficiary.

Did you pay twice for the same return? 

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