My 18 year old son didn't earn much income in 2021 (<$1000).
They are a full time student at a school in the US and we all now live in the US and are citizens here.
We originally are from Canada and have some RESPs.
We used one of the RESPs for university costs in 2021.
Grants and taxes were removed from the amount we received.
We have received a form NR4.
Given that these funds were used for school related expenses, is my son required to file taxes and show this NR4 amount that he received even though he was probably not going to file taxes due to minimal income?
Do I need to include his NR4 on my return, even though its for schooling related expenses and isn't really income?
Thanks in advance.
Does my child need to file taxes if they received form NR4 for their RESP but have no other income
Moderator: Mark T Serbinski CA CPA
Re: Does my child need to file taxes if they received form NR4 for their RESP but have no other income
I should have mentioned that the code is 24 - Registered Education Savings Plan.
We have always seen this as a grantor trust and paid yearly taxes on it.
I would think that this income isn't required to be reported since it is for qualified education expenses.
Just looking for confirmation on the above question and this.
We have always seen this as a grantor trust and paid yearly taxes on it.
I would think that this income isn't required to be reported since it is for qualified education expenses.
Just looking for confirmation on the above question and this.
Re: Does my child need to file taxes if they received form NR4 for their RESP but have no other income
Would someone be able to validate the above questions/assumptions?
Re: Does my child need to file taxes if they received form NR4 for their RESP but have no other income
Hi, Complete
Is EAP treated as earned or unearned income?
Wage line is line 1, is EAP is categorized as "Scholarship and Fellowship grants"?
If EAP is "distributions of unearned income from a trust", it shouldn't be reported in wage line.
If my son gets 1K in W2(part time job in campus), plus 10K EAP, need he file tax return by following criteria?
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If a child has both earned and unearned income, that child must file a return for 2021 if:
unearned income is over $1,100
earned income is over $12,550, or
earned and unearned income together totals more than the larger of (1) $1,100, or (2) total earned income (up to $12,200) plus $350.
Is EAP treated as earned or unearned income?
Wage line is line 1, is EAP is categorized as "Scholarship and Fellowship grants"?
If EAP is "distributions of unearned income from a trust", it shouldn't be reported in wage line.
If my son gets 1K in W2(part time job in campus), plus 10K EAP, need he file tax return by following criteria?
============================================================================
If a child has both earned and unearned income, that child must file a return for 2021 if:
unearned income is over $1,100
earned income is over $12,550, or
earned and unearned income together totals more than the larger of (1) $1,100, or (2) total earned income (up to $12,200) plus $350.
Re: Does my child need to file taxes if they received form NR4 for their RESP but have no other income
With the changes to the forms 3520 and classification I don't see this money as being from a trust.
Same for fellowship/scholarship grants - I'm not sure this applies.
This is simply money saved for school and used for school expenses, like a 529 Plan.
That said, I am not sure.
According to Nelsona on the other similar thread, the NR4 with code 24 (RESP) would go on line 1 of the 1040 as a wage.
With that statement it would be earned income as per US taxes.
It can't be passive or interest income and be on line 1.
As long as the aggregate total of 'earned income' is <$12550 then a tax return isn't required.
Note that I am not considering the passive income requirement for $1100 which, if applicable for the dependent, would lead to a filing requirement.
Same for fellowship/scholarship grants - I'm not sure this applies.
This is simply money saved for school and used for school expenses, like a 529 Plan.
That said, I am not sure.
According to Nelsona on the other similar thread, the NR4 with code 24 (RESP) would go on line 1 of the 1040 as a wage.
With that statement it would be earned income as per US taxes.
It can't be passive or interest income and be on line 1.
As long as the aggregate total of 'earned income' is <$12550 then a tax return isn't required.
Note that I am not considering the passive income requirement for $1100 which, if applicable for the dependent, would lead to a filing requirement.