Non Resident RESP withdrawl while iiving in the USA

hesechey · Post by **hesechey** » Thu Apr 03, 2008 12:00 am

We are Canadian residents living in the USA and opened a Resp for our kids in Canada
We used my parents address because we were planning on moving back that year,However it has been 3-4 years now and I just sold what was in there( started at 4-6 k now 13 k in there. This is the first year that the RESP was over 10k. We file t216 income tax ever year in Canada but never reported the RESP. Are we in trouble for using a different address and not reporting this. I do not want to get in trouble for this and will talk to my Canadian CPA to report this for 2008 Tax year.. Any advice would be appreciated

Thanks

nelsona · Post by **nelsona** » Thu Apr 03, 2008 6:13 am

What t216?

How can you be "Cdn residents living in US"?

Have you been reporting the income on your 1040? you should.

Have you been accepting the "grant"? you should not.

hesechey · Post by **hesechey** » Thu Apr 03, 2008 7:59 am

We are in the USA on green cards and have been accepting the grant. We file 1040 returns in the USA and a 216 rental income tax return in Canada every year.

Thanks

nelsona · Post by **nelsona** » Thu Apr 03, 2008 8:16 am

So by filing 216 you are telling CRA that you re not residednt, but are accepting the grants. Not allowed, since the grants are only for residents.

Have you been reporting the growth in your RESP? The RESP is not sheltered in US, so all interest, dividendsa and agins are taxablew every year.

hesechey · Post by **hesechey** » Thu Apr 03, 2008 11:19 am

I have not been reporting the RESP on the 1040 in the USA . I guess I need to contact the IRS and Revenue Canada to straighten this up!!

Thanks for your reply!!

onttonc · Post by **onttonc** » Fri Apr 11, 2008 9:23 am

hesechey

Did you talk to IRS about this. I have missed reporting RESP's to IRS for last three years. Did you get any response from them

I can't imagine what kind of mess I am in. Will have to figure it out.

hesechey · Post by **hesechey** » Fri Apr 11, 2008 10:07 am

No not yet, I have had RESP,s in Canada since 2002!! If you look up David Ingram online, He is an international tax expert and has a Q and A form that you will find which papers you will need to file! Good luck!! I will post again when I talk to the IRS