Form 8891 filing with Taxcut

penjoy777 · Post by **penjoy777** » Mon Mar 23, 2009 7:46 pm

I am a Canadian citizen and a resident of US for tax purpose. I had filed my departure return last year. I am using Taxcut to file my income tax returns this year since I will be filing only a US return. I do hold RRSP/RESP accounts that I will be reporting on Form 8891. I could not find form 8891 under this software. Does that mean I will have to print the returns, file a 8891 and attach it to 1040 and mail my return rather than efiling it?
Can I mail form 8891 separate after efiling 1040?

nelsona · Post by **nelsona** » Tue Mar 24, 2009 5:27 am

RESPs are NOT protected and you must pay tax on these yearly. Only RRSPs are protected, and reported on 8891. RESPs also need to be reported on form 3520. Not pleasant.

Taxcut doesn't have 8891. You can e-file your return, an then You can submit these later with form 1040-x.

penjoy777 · Post by **penjoy777** » Tue Mar 24, 2009 10:05 am

Thanks for the reply. With the RESP, since I am no longer a resident to Canada, I am not receiving the grant (20% contribution) from the Canadian government. Do I still have to report these on form 3520?
You have indicated that "only RRSPs are protected and reported on 8891", does that mean that I dont have to report RESP on Form 8891?

nelsona · Post by **nelsona** » Tue Mar 24, 2009 1:55 pm

RESPs are foreign trusts, and must be reported on form 3520. Also, the income that your RESP is generating (internal interst, cap gains, dividends) must be reported as income just like any normal investment account.

Only RRSPs are protected against yearly taxation and from 3520 reporting by filing 8891.