Report amounts that are paid regularly, even if the person did not receive them before they died. Some examples of these amounts are salary, interest, rent, royalties, and most annuities. These amounts usually accumulate in equal daily amounts for the time they are payable. For more information, see Interpretation Bulletin IT210R2, Income of Deceased Persons - Periodic Payments and Investment Tax Credit.

There are 2 types of amounts that do not accumulate in equal daily amounts:

• certain amounts receivable by the deceased, but not payable to the deceased on or before the date of death
• amounts from some annuity contracts that the CRA considers to have been disposed of on death

For more information about amounts receivable on or before the date of death, see Return for rights or things.

For more information on Total income, see Common types of income for a Final return for line by line instructions.

Foreign income

If the deceased earned foreign income at any time in 2022, see "Report foreign income and other foreign amounts" in the Federal Income Tax and Benefit Guide.

Amounts an employer pays to the deceased person's estate

There may be amounts that an employer will pay to a deceased employee's estate. For these amounts, an employer will usually complete a T4 or T4A slip.

Some of the amounts an employer pays will be part of the deceased's employment income for the year of death. Report these amounts on the final return. The amounts are employment income for the year of death even if they are received in a year after the year of death. Box 14 of the T4 slip should include the following amounts:

• salary or wages (including overtime) from the end of the last pay period to the date of death
• salary or wages (including overtime) for a pay period finished before the date of death, but paid after death
• payment for vacation leave earned but not taken

The employer may change any of these amounts later because of an agreement or promotion. If the document that allows the change was signed before the date of death, report these additional amounts on the final return. However, if the document was signed after the date of death, the additional amounts are not taxable (see Chart 3).

Some of these amounts may be rights or things, and you may be able to report them on an optional return. For more information, see Return for rights or things. Some of the amounts an employer pays are income for the estate and should be reported on a T3 Trust Income Tax and Information Return. See Chart 2.

Forms and publications

• Federal Income Tax and Benefit Guide
• IT210R2, Income of Deceased Persons - Periodic Payements and Investment Tax Credit
• Guide T4011, Preparing Returns for Deceased Persons
• T3 Trust Income Tax and Information Return