Which non profit organizations have to file Form T1044, and when is it due?
For 2026, a non profit exempt under ITA 149(1)(l) or 149(1)(e) must file Form T1044 if it received over $10,000 of interest, taxable dividends, rents or royalties in the year, held total assets over $200,000 at the end of the previous fiscal period, or had to file one before. The return is due six months after year end.
Which organizations have to file the T1044?
Subsection 149(12) applies to every organization exempt under paragraph 149(1)(l) (clubs, societies and associations that aren't charities) or 149(1)(e) (agricultural organizations, boards of trade and chambers of commerce). It must file a T1044 for a fiscal period if it meets any one of three tests laws-lois.justice.gc.ca.
| Test | ITA paragraph | Period tested | What counts |
|---|---|---|---|
| Passive income over $10,000 | 149(12)(a) | The current fiscal period | Taxable dividends plus amounts received or receivable as interest, rentals or royalties |
| Total assets over $200,000 | 149(12)(b) | The end of the preceding fiscal period | Book value under generally accepted accounting principles |
| Filed before | 149(12)(c) | Any earlier fiscal period | A return was required for a preceding period |
The CRA's guide spells out the income test: gross rental receipts count before any expenses, interest from non arm's length sources counts, and foreign amounts are converted at the rate on the day received, without netting the tax withheld at source canada.ca.
The asset test looks back one year. An association that crosses $200,000 during its current year doesn't file on that test until the following year, and in its first fiscal period there's no preceding year end, so only the income test can trigger a return. Test (c) then locks the obligation in: once a return is required, one is due for every later period while the organization stays an NPO, whatever its revenue or assets canada.ca.
Some organizations never file it: registered charities, registered Canadian amateur athletic associations, registered national arts service organizations, and corporations exempt under 149(1)(i) that only provide low cost housing for the aged canada.ca. Whether your client qualifies for the exemption in the first place is covered in when an NPO is exempt from income tax.
When is the T1044 due for each year end?
The return is due within six months after the end of each fiscal period, without any notice or demand from the CRA laws-lois.justice.gc.ca. If the organization has more than one fiscal period inside 12 months (53 weeks for a corporation), each period needs its own return
canada.ca.
| Fiscal period ends | T1044 due |
|---|---|
| December 31, 2025 | June 30, 2026 |
| March 31, 2026 | September 30, 2026 |
| June 30, 2026 | December 31, 2026 |
| September 30, 2026 | March 31, 2027 |
| December 31, 2026 | June 30, 2027 |
Guide T4117 (Rev. 19) gives a paper address: Jonquière Tax Centre, T1044 Program, PO Box 1300 LCD Jonquière, Jonquière QC G7S 0L5. Financial statements aren't required with the return. To get proof of filing, send two copies of a covering letter and the CRA date stamps one and returns it. To correct a filed return, send a letter or a corrected T1044 marked "AMENDED" at the top of page 1 canada.ca.
The form itself is version 23 on the CRA's form page canada.ca.
What a late T1044 costs: $25 a day, capped at $2,500
Subsection 162(7) charges the greater of $100 and $25 for each day the failure continues, counting no more than 100 days laws-lois.justice.gc.ca. The CRA's guide states the same $100 minimum and $2,500 maximum for each failure to file, and says it issues a notice of assessment only when a late filing or failure to file penalty applies
canada.ca.
Worked example: a recreation association has a December 31, 2025 year end and held $240,000 of assets at December 31, 2024, so test (b) applies. The return was due June 30, 2026 and reached the CRA on August 14, 2026.
| Step | Amount |
|---|---|
| Days late (31 in July, 14 in August) | 45 |
| $25 times 45 days | $1,125 |
| Compare with the $100 minimum | $1,125 is higher |
| 162(7) penalty | $1,125 |
| Days late | $25 times days | Penalty |
|---|---|---|
| 3 | $75 | $100 (minimum) |
| 45 | $1,125 | $1,125 |
| 100 | $2,500 | $2,500 |
| 200 | $5,000 | $2,500 (100 day cap) |
A return filed with blanks is a separate risk: 162(5) charges $100 for each failure to provide information a prescribed form asks for laws-lois.justice.gc.ca. The guide says the CRA may waive the penalty for extraordinary circumstances beyond the organization's control if you send a letter explaining them
canada.ca; see the taxpayer relief request for how that request works. The same 162(7) formula runs the T1135 late penalty.
What goes on each part of the return?
The T1044 has seven parts, and its amounts cover all of the organization's activities canada.ca.
| Part | What you report | Lines |
|---|---|---|
| 1. Identification | Fiscal period, business number, trust number if any, final return box, type of organization code | None |
| 2. Amounts received | Membership dues and fees, government grants and payments, interest, taxable dividends, rentals and royalties, proceeds of disposition of capital property, sales and revenue from activities, gifts, other receipts | 100 to 106 |
| 3. Assets and liabilities | Cash and short term investments, amounts receivable from members and others, prepaid expenses, inventory, long term investments, fixed assets, other assets; amounts owing to members and to others | 108 to 115, 117 and 118 |
| 4. Remuneration | Total paid to employees and officers, the part paid to those who are members, other payments to members, and the member counts | 120 to 122 |
| 5. Activities | A short description, the mission statement in the first year, and any activities outside Canada | None |
| 6. Books and records | Where they are kept, if different from Part 1 | None |
| 7. Certification | Signed by a current officer | None |
Part 3 records assets other than cash and receivables at cost, and depreciable assets at cost less accumulated depreciation, the same book values that drive the $200,000 test. Line 102 is the figure that drives the $10,000 test. Keep the records for six years from the end of the last tax year they relate to, or file Form T137 to destroy them sooner canada.ca.
Does an incorporated NPO also file a T2, and how is this different from the T3010?
Yes. The T1044 sits on top of the income tax return. The CRA's guide says an NPO that is a corporation generally has to file a T2 or T2 Short return canada.ca, and the T2 guide has you claim the 149(1)(e) or (l) exemption by ticking box 1 after line 085
canada.ca. The T2 has its own deadline: see the T2 filing deadline.
Clubs whose main purpose is providing dining, recreational or sporting facilities to members are a special case. Under 149(5) the club's property is deemed held by a trust that is taxed on its income, with a $2,000 deduction laws-lois.justice.gc.ca, so the guide calls for a T3 return
canada.ca.
| Point | T1044 (NPO) | T3010 (registered charity) |
|---|---|---|
| Who files | NPOs and 149(1)(e) bodies that meet a test | Every registered charity, every year |
| Deadline | Six months after fiscal period end | Six months after fiscal period end |
| Late filing | $25 a day, $100 minimum, $2,500 cap under 162(7) | Registration can be revoked, plus a $500 penalty under 188.1(6) |
| Donation receipts | Cannot issue them | Can issue official donation receipts |
The CRA's comparison page confirms the split: a charity must file the T3010, while an NPO may have to file a T1044 plus a T2 or T3 canada.ca. Subsection 162(7) excludes registered charities by name
laws-lois.justice.gc.ca, which is why a late T3010 is handled through revocation instead
canada.ca. More on that in the T3010 filing deadline.
What changes for fiscal periods starting in 2027?
On January 29, 2026, Finance Canada released draft legislation that includes technical changes to the NPO reporting proposals canada.ca. As of October 2026 they are still draft: the current text of 149(12) has only the three tests above
laws-lois.justice.gc.ca.
| Rule | In force now | Draft, fiscal periods beginning on or after January 1, 2027 |
|---|---|---|
| Full T1044 triggers | Passive income over $10,000, assets over $200,000, filed before | The same three, plus total amounts received in the period over $100,000 |
| Smaller NPOs | No return | A new short form return under proposed 149(13) |
| Short form contents | Not applicable | Activities (including any outside Canada), total assets, total liabilities, total receipts, name of each director, officer or trustee |
| Out of scope for the short form | Not applicable | Receipts of $10,000 or less, groups that aren't organized, and anyone already filing the full return |
The explanatory notes say the "not an organization" exception is meant to leave out loosely organized recreational groups, and point to a defined purpose, a constitution or bylaws, a structure and defined governance roles as signs that a group is organized fin.canada.ca. Nothing changes for a December 31, 2026 year end, but a client with a calendar year will be under the new rules for 2027 if they are enacted as drafted.
Sources
Does a condominium corporation have to file a T1044?
Only if it meets one of the three tests, but it usually is an NPO. The CRA's guide says condominium corporations usually qualify, decided case by case canada.ca, and a reserve fund can push total assets past $200,000 at a year end, which triggers a return for the following year.
Are rents counted gross or net for the $10,000 test?
Gross. The guide says to include gross rental receipts without deducting the related expenses canada.ca, so a hall that rents out for $12,000 a year triggers a return even if upkeep costs more than that.
Can the organization stop filing once it falls below the thresholds?
No. Paragraph 149(12)(c) requires a return for every period after one was required laws-lois.justice.gc.ca, and the CRA says that holds as long as the organization remains an NPO, regardless of revenue or assets.
Do I attach the financial statements to the T1044?
No. The guide says financial statements are not required with the return canada.ca. Keep them with the books, since Part 3 and line 102 should tie back to them.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.