Students

RESP for school

[OP]
Newbie
Jul 6, 2019
66 posts
10 upvotes

RESP for school

Hello I’m wondering if this is correct. First off the resp is not much and I’d like to go with my parents to withdraw it. So on rbc site it says if I provide proof of enrolment I get the whole amount sent to me and if I don’t I simply get the contribution portion and must pay tax on the government part. Is this correct so far? Also, when I called to ask I stated I was going to use it for educational purposes but the agent still says I pay tax on the government part. Is that correct? Lastly the tax is based on the student(me) income so what if I’m full time and don’t work.

I already paid for tuition and books so I plan on using it for meals on days I have classes for seven hours, is this not allowed? Will I get in trouble?

Do I the student include the amount once I get it onto my income tax and if so for which year? I’m guessing for this upcoming filings but not sure.
2 replies
Deal Addict
Nov 3, 2006
3183 posts
537 upvotes
Winnipeg
You can withdraw from RESP balance by showing proof of enrollment and the receipt of what you paid to the school... Your RESP will have two components, one coming from the government, and the rest is the actual monies that were placed by your parents. The grant part from the government is taxable, and you will be given a tax form for that particular year which you will then declare in your tax return. If you don't work and the amount you withdrew is less than low income cutoff, then you are exempted from taxes (and can even claim GST/HST credits refunds)...
Member
Nov 10, 2013
310 posts
203 upvotes
Richmond Hill, ON
The taxation optimization on RESP w/d is quite complicated.
Up to 12K income in ON is tax free.
Got to FWF forum and search or post your details here and I will help, i.e. the amounts and perhaps the province.
Most banks have explanations on their web sites on RESP w/d - read them, EAP etc.

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