In family resp with 3 children as benefeciaries and only one child as us citizen in family ( parents not us citizens or residents) . Family resp created by one parent
A) what forms ( 3520 3520 A) us citizen kid need to file and at what age...before 18 yrs or after 18 yrs of age
B) As canadian parent established family resp do they need to file above forms
C) fbars need to be filed for resps but canadian parent has to file or us citizen kid has to file and from what age before 18 yrs or after 18 yrs age
D) if family resp is in mutual funds what other forms need to be filed.
Usc kid started withdrawing at age 18 but bank statements in both family gic resp and family resp mutual funds show him as one of the beneiciary.
In summary if one of kids is only us citizen in family resp ( gic and mutual funds)
What forms need to be fliled to be in compliance
By whom
At what age
I see lots of topics in which us parent established resp for us kids but i need info if non us parent establishes resp for us kid than what are tax filing requirement
resp reporting for us citizen child but parents are canadian
Moderator: Mark T Serbinski CA CPA
The US citizen must have signature authority over the RESP in order for an FBAR to be required and must be an owner of the RESP for the 3520A and 3520 forms to be required so as far as the US citizen 18 year old beneficiary of the family RESP is concerned, I don't see how any of these forms are required.
Now that the the 18 year old beneficiary is withdrawing from the RESP, a Canadian T4Resp form is being sent out and, of course, will be Revenue Canada reportable (though he likely won't owe any taxes in his bracket). My guess is that that income is reportable also on a US 1040 form, but again he wouldn't likely owe anything. Actually, I don't really know how that end of it is handled to potentially avoid double-taxation if the amounts withdrawn become substantial.
Nelson may have some more accurate information.
Now that the the 18 year old beneficiary is withdrawing from the RESP, a Canadian T4Resp form is being sent out and, of course, will be Revenue Canada reportable (though he likely won't owe any taxes in his bracket). My guess is that that income is reportable also on a US 1040 form, but again he wouldn't likely owe anything. Actually, I don't really know how that end of it is handled to potentially avoid double-taxation if the amounts withdrawn become substantial.
Nelson may have some more accurate information.
Thanks for reply.
Now that my kid is withdrawing did she need to file fbar and form 3520 and form 3530a . Also mutual funds in family resp she needs to file additional forms related to mutual fund withdrawal.Her signature is requited if grants are witjdrawn. For capital withdrawal from resp I sign .
In resp accounts I am the owner and three kids benefeiciarirs and only one of them us citizen.
These are family resp so any beneficiary can withdraw more than 50 % from capital but not more than 7200 cad in grants. Out of three kids two are withdrawing as going to college
Fbar for family resp...american kid has to file now as she withdrew. ...I read once usc kid start withdrawing they have to file 3520 and fbar. Problem with fbar is she is one of three benefeciaries.
Can she be considered owner of family resp once she starts withdrawing?
Once usc kid start receiving distribition from family resp what forms to be filed in her case?
Now that my kid is withdrawing did she need to file fbar and form 3520 and form 3530a . Also mutual funds in family resp she needs to file additional forms related to mutual fund withdrawal.Her signature is requited if grants are witjdrawn. For capital withdrawal from resp I sign .
In resp accounts I am the owner and three kids benefeiciarirs and only one of them us citizen.
These are family resp so any beneficiary can withdraw more than 50 % from capital but not more than 7200 cad in grants. Out of three kids two are withdrawing as going to college
Fbar for family resp...american kid has to file now as she withdrew. ...I read once usc kid start withdrawing they have to file 3520 and fbar. Problem with fbar is she is one of three benefeciaries.
Can she be considered owner of family resp once she starts withdrawing?
Once usc kid start receiving distribition from family resp what forms to be filed in her case?
You are re-asking some of the same questions.
Once again: You are a non-US citizen or resident who 'owns' the RESP and have signature control over it, so I don't see how you would need to file FBARs or the 3250A and 3250. I am not aware of any reason why a beneficiary in this case would have to file those forms.
If you were saying that the US citizen beneficiary needs to sign to get the CESG grant then I don't think that affects anything. There's a case to be made that the 'owner' of the RESP doesn't even 'own' the CESG.
Once the US citizen child beneficiary starts withdrawing from the mutual fund part and other parts of the RESP, there may be a need to file a US 1040 to report capital gains and other income.
But don't take my word for any of this. I'm just trying to narrow down what I see as your main issues. Read up on who must file FBARs and the 3520/A forms. (That part is pretty straightforward.) Ordinarily, IRS helplines are rather useless for RESP questions, but yours is relatively simple and the helpline might actually be able to help you.
Once again: You are a non-US citizen or resident who 'owns' the RESP and have signature control over it, so I don't see how you would need to file FBARs or the 3250A and 3250. I am not aware of any reason why a beneficiary in this case would have to file those forms.
If you were saying that the US citizen beneficiary needs to sign to get the CESG grant then I don't think that affects anything. There's a case to be made that the 'owner' of the RESP doesn't even 'own' the CESG.
Once the US citizen child beneficiary starts withdrawing from the mutual fund part and other parts of the RESP, there may be a need to file a US 1040 to report capital gains and other income.
But don't take my word for any of this. I'm just trying to narrow down what I see as your main issues. Read up on who must file FBARs and the 3520/A forms. (That part is pretty straightforward.) Ordinarily, IRS helplines are rather useless for RESP questions, but yours is relatively simple and the helpline might actually be able to help you.
The tax is "owed" by the sponsor, until it is withdrawn by the student, at which point it becomes owed by the student.. If the sponsor is non-US person, then evr nothing to report by them in US.
Once the funds are used by the student, they are taxable in their hands by CRA. The income, in US terms for the student, if they are a US person, is trust income , reportable on 3520, but only taxable to the extent of the gains/interest/dividends made during that year. At that point, the US student would need FBAR, foreign reporting and 3520.
Once the funds are used by the student, they are taxable in their hands by CRA. The income, in US terms for the student, if they are a US person, is trust income , reportable on 3520, but only taxable to the extent of the gains/interest/dividends made during that year. At that point, the US student would need FBAR, foreign reporting and 3520.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing 
Nelsona: 'The income, in US terms for the student, if they are a US person, is trust income , reportable on 3520, but only taxable to the extent of the gains/interest/dividends made during that year. At that point, the US student would need FBAR, foreign reporting and 3520.'
Nelson is absolutely right. This was even in my own notes if I had bothered to check them more closely. :)
Nelson is absolutely right. This was even in my own notes if I had bothered to check them more closely. :)
At the time the student is withdrawing the money, yes PFIC rules apply. As you said, this has been discussed alreafy, I'm sure you can extrapolate for your particular situation.. Does the wheel need to be redescribed fpr every imaginable situation, particularly if it s years down the road.
You questions have been dealt with.
You questions have been dealt with.
nelsona non grata. Non pro. Please Search previous posts, no situation is unique as you might think. Happy Browsing
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DonMurphyCanada
- Posts: 73
- Joined: Sat Mar 01, 2014 11:41 pm
What does "only taxable to the extent of the gains/interest/dividends made during that year."
For example assume $5000 RESP that is distributed to US Citizen living in Canada (my son). Where does $5000 US money go? To Other income? You can assume that the trust holder files 3520/3520A's correctly through the years to report CESG/interest income.
Maybe asked another way what fields on 1040 are affected? Line 21 and if applicable 8a or would that be 9a?
Thanks,
Don
For example assume $5000 RESP that is distributed to US Citizen living in Canada (my son). Where does $5000 US money go? To Other income? You can assume that the trust holder files 3520/3520A's correctly through the years to report CESG/interest income.
Maybe asked another way what fields on 1040 are affected? Line 21 and if applicable 8a or would that be 9a?
Thanks,
Don
Re: resp reporting for us citizen child but parents are canadian
I am in this situation in 2024. My daughter is US citizen and my son is Canadian. They have a joint RESP. My daughter turned 18 and has $6300 (US) in grants and distribution. No other income. What is her filing requirements? Does she need to file FBAR? She has no signature authority in RESP. Since 2020, RESP is exempt from 3520 and 3520A reporting. Thanks in advance.