Line 130 - Death benefits (other than Canada or Quebec Pension Plan death benefits)
A death benefit is an amount you receive after a person's death for their employment service.
Generally, amounts are shown on these slips:
- T4A, Statement of Pension, Retirement, Annuity, and Other Income
- T3, Statement of Trust Income Allocations and Designations
You may not have to pay tax on up to $10,000 of the benefit you received. If you are the only one to receive a death benefit, report the amount you receive that is more than $10,000.
Even if you do not receive the full death benefit in one year, the total tax-free amount for all years cannot exceed $10,000.
To find out what to report if anyone else also received a death benefit for the same person see Interpretation Bulletin IT-508, Death Benefits.
Attach to your paper return a note stating the death benefit amount you received but did not include in your income.
Completing your tax return
Report on line 130 the amounts shown in box 106 of your T4A slips and box 26 of your T3 slips less any exemption to a maximum of $10,000.
Forms and publications
- General income tax and benefit package - Guide, return and schedules
- Interpretation Bulletin IT-508, Death Benefits
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