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 that person's 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 all of the death benefit in one year, the total tax-free amount for all years cannot be more than $10,000.

If you and several people (including the surviving spouse or common-law partner) are the beneficiaries of the death benefit, you will split the remaining amount of the $10,000 exemption that the surviving spouse or common-law partner did not use. You will share the exemption evenly based on the amount each beneficiary received.

However, if you are considered a spouse or common-law partner, and there is another spouse or common-law partner, you will split the $10,000 exemption between yourself and the other spouse(s) or common-law partner(s) based on the amount each of you received.

Attach to your paper return a note stating the amount of death benefits you received but did not include in your income.

Completing your tax return

Enter on line 130, the amount shown in box 106 of your T4A slips less any exemption.

Enter on line 130, the amount shown in box 26 of your T3 slips less any exemption.

Forms and publications

• General Income Tax and Benefit Package - Guide, return and schedules
• IT-508, Death Benefits

Related topics

• What to do when someone has died