One of my sons is currently living in Canada (19 years old), has lived in Canada since he was 6. He is attending full time university in Canada since September of 2013.
Question1 T4 income should go on line 7 of 1040. Should the T4A income from a scholarship from the University be declared on line 34?
Question2 Next year he will be getting a RESP distribution from us that we have painstakingly declared on 3520, 3520A, 1040. Where will this income be recorded?
Is this simply Other Income line 21? If it's a large amount and there is no other Canadian income / taxes to offset the tax burden should I expect him to be paying no Canadian tax next year but be paying some US tax? If so assuming a yearly distribution of $10000 US for the next three years what would the tax rate be?
19 Year old USC son with T4 & T4A income
Moderator: Mark T Serbinski CA CPA
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DonMurphyCanada
- Posts: 73
- Joined: Sat Mar 01, 2014 11:41 pm
t4a income certainly not line 34, as that is a deduction, not income.
It goes on line 21.
as for the RESP income, if you ahve been reporting and apying tax all along, why would any of it be taxable in either your hands or his.
It is a non-taxable trust distribution.
It goes on line 21.
as for the RESP income, if you ahve been reporting and apying tax all along, why would any of it be taxable in either your hands or his.
It is a non-taxable trust distribution.
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