RESP reporting

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marcharry
Posts: 15
Joined: Wed Sep 23, 2009 10:45 am

RESP reporting

Post by marcharry »

The RESP is controlled by my Canadian-only wife. My daughter is dual. The daughter, received income from the RESP for school. Daughter will report the income on the 1040NR.

Does the daughter need to file a 3520?
MGeorge
Posts: 313
Joined: Fri Jun 22, 2012 9:23 am
Location: Canada

Post by MGeorge »

Hello,

If your daughter is a US citizen, she needs to file a 1040, not 1040NR. NR is short for "non-resident alien" (they should call the form 1040NRA)

I believe she has to file a 3520 to report being the beneficiary of a foreign trust - but I have limited experience with this part.
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MGeorge is neither an accounting nor taxation professional.
nelsona
Posts: 18314
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona »

Correct.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing :D
marcharry
Posts: 15
Joined: Wed Sep 23, 2009 10:45 am

Post by marcharry »

Thank you

That is unfortunate but not totally unexpected. But no 3520A is required as the trust is not owned by a US citizen.

Getting fancy, is it fair to say that the reporting obligation only exists while the beneficiary is getting grants and/or investment income during years 1 and 2 but not while she is getting our own contributions in years 3 and 4?
DaveM
Posts: 52
Joined: Thu Jun 12, 2014 12:46 am

Post by DaveM »

I know where you are going, but the IRS doesn't care: Income from the trust is income from the trust & a 3250 will be required until there is none.
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