Search found 79 matches

by Ron.Henderson
Thu Nov 19, 2020 3:37 pm
Forum: Canada / United States Tax & Accounting
Topic: RESP for Canadian/US dual citizen beneficiary
Replies: 5
Views: 108

Re: RESP for Canadian/US dual citizen beneficiary

If neither you nor your wife are US citizens, is your daughter is an "Accidental American" - a dual citizen by virtue of having been born in the US? Since you don't claim to be US persons either, are you living in Canada? If both assumptions are correct, please do your daughter a big favour by *not*...
by Ron.Henderson
Sat Oct 17, 2020 12:47 am
Forum: Canada / United States Tax & Accounting
Topic: Question about income source from NSERC postdoctoral fellowship
Replies: 14
Views: 482

Re: Question about income source from NSERC postdoctoral fellowship

I don't remember in great detail but I think also that I was not able to claim non-resident status because my main source of income was the Canadian government.
by Ron.Henderson
Fri Oct 16, 2020 5:25 pm
Forum: Canada / United States Tax & Accounting
Topic: Question about income source from NSERC postdoctoral fellowship
Replies: 14
Views: 482

Re: Question about income source from NSERC postdoctoral fellowship

It was several decades ago but when I had a SSHRC doctoral fellowship while studying in the US, I was told by someone that it was Canadian-source, and since I had a T-4, I filed a Canadian return and paid Canadian tax on it. I kept my life uncomplicated by not filing a US return. That may or may not...
by Ron.Henderson
Wed Sep 16, 2020 11:30 am
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

When you do the second installment, just be a bit careful. I messed up, asked for $5000 at the start of the semester then $20,000 in December, to cover the rest of the year. The bank did 80 percent EAP so the kid wound up with $20,000 taxable income and only one semester's tuition expenses. Oops. Wa...
by Ron.Henderson
Wed Sep 16, 2020 11:26 am
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

That might be how it worked with us as well - the RESP was actually done by the grandparents so I never touched the money. I can't remember if they received it and passed it on, or if it went directly to the kid.
by Ron.Henderson
Mon Sep 14, 2020 6:51 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

To your last point, our bank sent the money directly to the kid, and issued tax forms in their name (for the taxable EAP portion only. You can ask the bank how much from each source to disburse - which percentage from original contribution (non-taxable) and which percentage from EAP (taxable) - each...
by Ron.Henderson
Mon Sep 14, 2020 4:55 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

Before you make the withdrawal, discuss with the bank what portion should be taxable. I did not know to do this when our child started university, and made two mistakes: first, taking out the full year's disbursement in December, when only one semester's tuition could be written off for that tax yea...
by Ron.Henderson
Mon Sep 14, 2020 3:50 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

Not sure why the bank thinks it should be withholding, but if you're all US residents then they're probably going make an expensive mess of the situation. In our case the payment is made directly to the student - a cheque in their name - since it's their income; the parent requests the withdrawal an...
by Ron.Henderson
Mon Sep 14, 2020 1:06 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

And again, sorry. You're wrong about the government contribution being taxable, by the way. It is. Without knowing where the student is and which returns they file, it's a bit hard to figure out the tax implications. Here is a useful summary found on the Interwebs: -------------- Tax treatment of wi...
by Ron.Henderson
Mon Sep 14, 2020 12:54 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

Sorry for the multiple posts. Could you clarify one point: the bank's claim that a copy of the NR4 is sent to the IRS. Under what circumstances would that happen? It's certainly not part of the FATCA agreement as I understand it. Furthermore, RESP accounts (like RRSP, RDSP, TFSA and others) are not ...
by Ron.Henderson
Mon Sep 14, 2020 12:51 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

There was also no withholding in our case. If any tax is due, it's paid by the student the following year. The student in question lives and studies in Canada and is not filing US tax returns.
by Ron.Henderson
Mon Sep 14, 2020 12:49 pm
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

Again, I believe that any tax paid on the taxable (earned growth) portion is paid by the student, not by the contributor.

At least that's how it works in this family.
by Ron.Henderson
Sun Sep 13, 2020 11:52 am
Forum: Canada / United States Tax & Accounting
Topic: Reporting the EAP portion of RESPs in the 1040
Replies: 20
Views: 805

Re: Reporting the EAP portion of RESPs in the 1040

Is this one of those situations where the Canadian government has contributed towards your children's education, but the IRS wants to take a cut? So thoughtful of them. Two thoughts: Is it not the child who pays income tax on the RESP withdrawal, not the parent? This is a good example of when it mak...
by Ron.Henderson
Sun Aug 30, 2020 10:30 am
Forum: Canada / United States Tax & Accounting
Topic: Dual Citizen. Canadian Resident. Work in USA without losing Canadian residency?
Replies: 11
Views: 676

Re: Dual Citizen. Canadian Resident. Work in USA without losing Canadian residency?

That makes sense. The OP was worried about someone spending "a few months" in the US.

Provincial health coverage can be an issue.

US tax on the gains is also an issue if one is filing US returns and reporting the sale and all that. The vast majority of dual citizens do not, thankfully.
by Ron.Henderson
Sun Aug 30, 2020 12:02 am
Forum: Canada / United States Tax & Accounting
Topic: Dual Citizen. Canadian Resident. Work in USA without losing Canadian residency?
Replies: 11
Views: 676

Re: Dual Citizen. Canadian Resident. Work in USA without losing Canadian residency?

And if she spent a year outside of Canada (deemed to be non-resident) then returned and sold the house many years later, what happens? Does she go back and figure out some taxable fraction of the capital gains? The more likely real-world scenario for someone out of the country temporarily (however m...