Do I need to file Form 1040NR or 1041 for TFSA and RESPs

Stevecanada · Post by **Stevecanada** » Sun Mar 30, 2014 4:30 pm

I am a dual US / Canadian citizen living in Canada for many years. I have 2 RESP accounts and 1 TFSA. I have been filing Forms 3520 / 3520-A, but I am now wondering whether I should also file from 1040NR or Form 1041 as well. Please note that my RESPs and TFSA have no US source income.

Stevecanada · Post by **Stevecanada** » Sun Mar 30, 2014 4:33 pm

I should have mentioned that I file Form 1040 and all other required forms - I just wonder whether I should have been filing Forms 1040NR and/or 1041 for the TFSA and RESPs.

nelsona · Post by **nelsona** » Mon Mar 31, 2014 12:49 am

You never file 1040NR. You include the RESP and TFSA internal income on your 1040.

gpancio · Post by **gpancio** » Mon Mar 31, 2014 8:39 am

If RESP/TFSA are considered "foreign trusts" is reporting income from them as simple as including on the 1040?
There are other forms to file, correct? (3520)

I'm in the same boat and don't quite understand how to report income/gains from TFSA nor RESP.
TFSA should be simple- it's just interest paid to me. Is it that easy?
RESP is a fund, with $500 CESG per year. I don't know how to report that. Plus, I don't know if I have "earned" anything, wouldn't it just have increased in value? (do you report increase in value as earnings? what if it loses value!)

Sorry if these are basic questions covered elsewhere in this forum. I'm in the process of doing my homework.

gpancio · Post by **gpancio** » Mon Mar 31, 2014 8:40 am

[quote="gpancio"]If RESP/TFSA are considered "foreign trusts" is reporting income from them as simple as including on the 1040?
There are other forms to file, correct? (3520)

I'm in the same boat and don't quite understand how to report income/gains from TFSA nor RESP.
TFSA should be simple- it's just interest paid to me. Is it that easy?
RESP is a fund, with $500 CESG per year. I don't know how to report that. Plus, I don't know if I have "earned" anything, wouldn't it just have increased in value? (do you report increase in value as earnings? what if it loses value!)

Sorry if these are basic questions covered elsewhere in this forum. I'm in the process of doing my homework.[/quote]

Oops, the original poster *did* mention the 3520s.

gpancio · Post by **gpancio** » Mon Mar 31, 2014 9:39 am

So far from what I can tell, you report as such:

- TFSA (interest) - just report as interest
- RESP (CESG grant) - report as other income
- RESP (unrealized gains) - report as such, you don't pay tax on it.

Is that right?

I don't mean to hijack this thread. Perhaps the original poster has similar questions.

gpancio · Post by **gpancio** » Mon Mar 31, 2014 9:41 am

[quote="gpancio"]So far from what I can tell, you report as such:
- RESP (unrealized gains) - report as such, you don't pay tax on it.
[/quote]

*unless you choose to report as mark-to-market?