CRA concludes that adjusted income for RMES purposes does not include income of spouse who died in the year

“Adjusted income” as defined in s. 122.6 is relevant to an individual’s entitlement to the refundable medical expense supplement ("RMES") under s. 122.51 and to the Canada child benefit under s. 122.61. Given that the “adjusted income" is the total of the income for the year of the individual or of the individual's "cohabiting spouse or common-law partner" at the end of the year, CRA unsurprisingly concluded (in the context of the RMES entitlement) that the adjusted income of a surviving spouse for a year does not include the income of a spouse who died during the year.

This reversed 2014-0536771E5 F, which appeared to consider that where the deceased spouse was not living separate and apart from the survivor at the time of death, the deceased spouse was deemed to be a "cohabiting spouse or common-law partner" of the survivor.

Neal Armstrong. Summary of 24 January 2023 External T.I. 2018-0753471E5 F under s. 122.6 – adjusted income.