Even if you’ve declared bankruptcy in 2016, you still need to complete and file a tax return. The rules will be different however, depending on if you’re filing a federal tax return (with the Canada Revenue Agency (CRA)) and/or a Québec tax return.
Am I eligible?
If you’re filing a federal tax return, your trustee (the person acting as the administrator of your property and assets) will have to file a completed Form DC905, Bankruptcy Identification Form with the CRA before you can submit a bankruptcy return. Depending on your situation, you might be required to file one of 3 different types of bankruptcy returns:
- Pre-bankruptcy return: This type of return covers the period ranging from January 1 up to the day before the date of bankruptcy
- In-bankruptcy return: This type of return covers the period ranging from the date of bankruptcy to December 31, and reports the income you received from your liquidated assets (like your RRSPs) or from businesses that are wound down by your trustee for the benefit of your creditors, after you’ve filed for bankruptcy
- Post-bankruptcy return: This type of return covers the period ranging from the date of bankruptcy to December 31
Note: Unfortunately, H&R Block’s tax software doesn’t support bankruptcy returns – but that doesn’t mean you have to figure it out on your own! In the event of a bankruptcy, your trustee will look after completing and filing your pre-bankruptcy and in-bankruptcy returns for you.
We should mention that in most cases, your trustee won’t file a post-bankruptcy return on your behalf. If you need a hand preparing this return, we recommend speaking to one of our tax experts at the retail location closest to you – they’ll be happy to help! (fees will apply).
Additional CRA resources
If you have additional questions concerning your personal bankruptcy and how it relates to your federal return, you might find the following resources helpful:
I’m a resident of Québec. What are my obligations?
If you’re filing a Québec return, you’re required to file 2 income tax returns (TP-1-V):
- the first, for the period ranging from January 1 to the day before your date of bankruptcy
- the second, for the period ranging from the date of bankruptcy to December 31
If you declared bankruptcy in 2016, both of the returns mentioned above must be filed no later than April 30, 2017 (or June 15, 2017 if your spouse owns a business). For more information on tax obligations related to your bankruptcy, check out the Revenu Québec website.
Additional Revenu Québec resources
If you have additional questions concerning your personal bankruptcy and how it relates to Revenu Québec, you might find the following resources helpful: