61 Other income
Enter the total of all other income of the trust that has not already been entered on lines 50 through 60. For a testamentary trust, this income may be amounts that it received after a death (employment-related income, a death benefit paid under the QPP or the CPP, a pension plan benefit or a benefit from a foreign retirement arrangement or income earned from an RRSP or RRIF after the death).
You must enter on line 61a the code below that corresponds to the type of income reported on line 61:
| 01 | Employment-related income (other than a death benefit derived from an office or employment) |
| 02 | Death benefit derived from an office or employment |
| 03 | Death benefit paid under the QPP or the CPP |
| 04 | Income-averaging annuity for artists |
| 05 | Income earned from an RRSP or RRIF after death |
| 06 | Additional income of a mutual fund trust |
| 07 | Other income |
If the trust is reporting more than one type of income, enter 99.
01 Employment-related income
In general, employment income paid after an individual's death must be entered in the deceased's income tax return. However, the following income related to the individual's employment must be reported in the income tax return of the individual's succession:
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severance pay payable upon the individual's death (referred to as a "death benefit derived from an office or employment" below) that may qualify for a $10,000 exemption (refer to the instructions below);
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retroactive severance pay (paid after the individual's death), regardless of the date on which the collective agreement was signed;
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refunds, upon the individual's death, of contributions to a pension plan;
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retiring allowance paid after the individual's death, except the portion that the deceased was entitled to, but did not receive before death.
02 Death benefit derived from an office or employment
A death benefit may also be paid by an employer in recognition of the services rendered in respect of an office or employment. If the death benefit is paid to the trust, the trust can claim an exemption of up to $10,000.
If the benefit is paid over a period of more than one year, the $10,000 exemption must apply in sequence to reduce or cancel the total amount of the benefit payments received.
As of 2016, if the trust must allocate the death benefit to one or more beneficiaries, the benefit can qualify as a death benefit only if the trust is a GRE. In this case, the beneficiaries are entitled to the $10,000 exemption. Refer to the instructions and examples below.
(a) Exemption deducted by the trust
If the trust elects to deduct the exemption from its own income and the net amount of the benefit is not reduced to zero, enter the net amount on line 61 and allocate it to the beneficiary or beneficiaries, as applicable.
Enclose the RL-1 slip issued by the employer of the deceased with the return.
(b) Exemption not deducted by the trust
If the trust does not deduct the exemption, you must enter the gross amount of the benefit on line 61.
Where the death benefit is paid to only one beneficiary and the payments are made over a period of more than one year, the following rules apply:
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For the first year, the exemption applies to the aggregate of the amounts received in the year, to a maximum of $10,000.
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For subsequent years, the portion of the exemption the beneficiary can claim is equal to the maximum exemption of $10,000 minus the aggregate amount of the exemption claimed in previous years.
If the death benefit is paid to more than one beneficiary, the exemption granted to each beneficiary must not exceed the lesser of the following amounts:
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the amount that the beneficiary received in the year;
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the result obtained by multiplying $10,000 by the ratio between the amount the beneficiary received and the total amount of the benefit.
If the benefit payments are made over a period of more than one year, this calculation must be done each year.
Enclose the RL-1 slip issued by the employer of the deceased with the return.
Example 1
The sole beneficiary of a death benefit of $13,000 received $6,000 in 2023 and will receive $7,000 in 2024. The exemption to which the beneficiary is entitled is:
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$6,000 for 2023 (the amount received, up to $10,000);
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$4,000 for 2024 (the amount received, up to the result of $10,000 - $6,000).
Enter $6,000 in box G of the RL-16 slip for 2023, and enter "G-7" in a blank box, followed by the amount of $6,000.
Enter $7,000 in box G of the RL-16 slip for 2024 and "G-7" in a blank box, followed by the amount of $4,000.
Example 2
A surviving spouse and that person's son each receive 50% of a death benefit of $12,000. The benefit is paid over two years. $4,000 is paid in 2023 and $8,000 is paid in 2024. Since the benefit is paid to more than one person, the exemption for each person corresponds to the lesser of the following amounts:
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for 2023:
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50% of $4,000, that is $2,000,
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($10,000 × $2,000) ÷ $12,000, that is $1,666;
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for 2024:
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50% of $8 000, that is $4,000,
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($10,000 × $4,000) ÷ $12,000, that is $3,333.
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Enter $2,000 in box G of each beneficiary's RL-16 slip for 2023, and enter "G-7" in a blank box, followed by the amount of $1,666. Enter $4,000 in box G of the RL-16 slips for 2024 and "G-7" in a blank box, followed by the amount of $3,333.
3, 4
03 Death benefit paid under the QPP or the CPP
Enter on line 61 the amount of the death benefit paid under the QPP or the CPP, even if the amount was paid to a third party that paid the funeral expenses.
However, the death benefit may be included in the income of one or more beneficiaries of the trust if the succession has no other source of income, in which case the succession would be released from the obligation to file an income tax return.
317.2
04 Income-averaging annuity for artists
A testamentary trust that received an amount under an income-averaging annuity for artists may be required to redistribute all or part of the amount to a beneficiary. In this case, you must enter:
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in box G of the beneficiary's RL-16 slip the amount allocated in that regard; and
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"G-10" in a blank box of the slip, followed by the amount of income tax withheld on that amount.
312(c), 312(d.1), 669.5
05 Income earned from an RRSP or RRIF after death
Post-death income from an RRSP or RRIF is shown in box K of the RL-2 slip issued in the succession's name.
921.1, 961.16.1
06 Additional income of a mutual fund trust
The trust can include on line 61 an amount designated as additional income if, as applicable:
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the trust elected to have its taxation year end on December 15;
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the trust is a mutual fund trust throughout the year and has not made a designation under the first paragraph of section 663.1 or the first paragraph of section 663.2 of the Taxation Act.
You must report in Schedule C any portion of additional income that is allocated to a beneficiary during the taxation year (and file an RL-16 slip in the name of the beneficiary accordingly), but can deduct the amount on line 81 of the income tax return for the following taxation year only.
1121.12, 1121.13
07 Other income
Enter the other income received by the trust, such as:
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the recovery of resource deductions (where the cumulative amount of Canadian exploration expenses, Canadian development expenses or foreign resource expenses [box A or box B of the RL-11 slip, or box 28, box 29, box 31, box 60 or box 61 of the RL-15 slip] is negative);
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the qualifying performance income of an athlete, as well as the interest and other income derived from property held by the trust, in the case of an amateur athlete trust;
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accumulated income payments from an RESP (box O of the RL-1 slip).
330(d)-330(e.1), 669.1, 851.34, 904.1
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