RESP joint account

This is our main tax information forum which deals with topics concerning Canadians living and working in the U.S., U.S. citizens contemplating working in Canada, and all aspects of Canadian and U.S. income tax and related adminstrative issues.

Moderator: Mark T Serbinski CA CPA

Post Reply
DonMurphyCanada
Posts: 73
Joined: Sat Mar 01, 2014 11:41 pm

RESP joint account

Post by DonMurphyCanada »

I am a Canadian citizen who married a US citizen living in Canada as a permanent resident.

We took out a RESP about 6 years ago and have now just discovered the reporting requirements of 3520-A, 3520 etc etc. You know the story ;)

Question 1 --> Because both of our names are on the RESP is there a way for me to break up the reporting of that income on the 3520-A form (I would suggest that since the account is joint with me that she be responsiple for half of it and I the other half?

Question 2 --> Is there an income threshold for reporting on the 3520-A?
I see in this wonderful summary [url]http://www.serbinski.com/documents/USTaxChapter2014.pdf[/url] page 3 that there appears to be an income threshold to filing (Married filing separately ………. $ 3,900 for 2013). In other words if our RESP interest and contributions from the Canadian government are very small (They have been about $500 per year) are we still required to submit this paperwork.

Thanks in advance these forums are a tremendous resource.


My wife has made very little income
DonMurphyCanada
Posts: 73
Joined: Sat Mar 01, 2014 11:41 pm

Post by DonMurphyCanada »

As an added piece of information the total value of the RESP is $6000 CAN dollars after all these years.
MGeorge
Posts: 313
Joined: Fri Jun 22, 2012 9:23 am
Location: Canada

Post by MGeorge »

Hello,

I had the same issue this year and never found a definitive answer on it. My wife is not a US citizen, but I am, and made sure that the 3520/3520A forms spell out that the contributions and income are split 50-50. I don't know if this is right - but I did reference "section 671" of the revenue code on the part for lines 7b(v) and 20e. I also made sure that the contributions are 50-50 and could produce paperwork to substantiate it if asked.

I'd like to hear from others if this the correct thing to do - shared account-shared income tax liability, etc. It only seems fair.

The prevailing advice is to move the RESP to the non-citizen spouse. If the IRS takes exception over my 50-50 split, then I'll say, "oh gee - guess I'll move it to my wife's name then".

Regarding your other question - as far as I know, there is no minimum for 3520 reporting.

This article might offer you some solace:

http://www.moodysgartner.com/irs-says-h ... an-trusts/

324 3520's filed. 2 of them were mine! I brought the average way down...
Diskdoctor
Posts: 75
Joined: Wed Apr 21, 2010 9:46 am
Location: Winnipeg

Post by Diskdoctor »

My wife and I filed 4 3520s in 2010 and we brought the average way down too!
Post Reply