Personal Finance

What are some other eligible RESP expenses?

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  • Aug 19th, 2020 2:13 pm
[OP]
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Apr 21, 2004
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What are some other eligible RESP expenses?

What if we didn't withdraw from the RESP for the first and second year tuition/rental/expenses, can we retroactively claim RESP expenses this year, going back to previous years as long as we have university account statements that back these up?


https://www.impots-ici.com/en/resps-for ... d-tuition/

RESP money can be used to pay for any education-related costs once you’ve provided proof of enrollment in a qualifying program.

You don’t have to specify how the money will be used or submit receipts (but keep them in case there are questions).

The government doesn’t publish a list of eligible (or ineligible) expenses, so it’s up to you to determine how RESP money will be used to pay for education-related expenses.

  • tuition
  • car - insurnace, gas, parking, maintenance
  • rent
  • meals
  • living expenses
  • laptop/tablet
  • desk
  • student fees

Anything else? I can think of a smartphone, furniture, bed/mattress, tutoring fees but I'm not too creative.
8 replies
Deal Fanatic
Jan 21, 2014
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Our TDDI didn't even care how we spent the money, just submitted the request form with a full time schedule or letter of confirmation from the university and they released the money, no question asked
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Feb 9, 2007
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Whitby
When we were eligible to, we just withdrew it all and put it into a TFSA.
After the tuition nobody cares how the rest is spent.
It's pronounced Throat Wobbler Mangrove
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Jul 1, 2007
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I think it's when you're doing an EAP withdrawal over $20K or so at a time that they start to ask for proof. Below that, and for capital withdrawals, no one cares as long as the beneficiary is enrolled.
Money Smarts Blog wrote: I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
[OP]
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Apr 21, 2004
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raymondly wrote: When we were eligible to, we just withdrew it all and put it into a TFSA.
After the tuition nobody cares how the rest is spent.
Thalo wrote: I think it's when you're doing an EAP withdrawal over $20K or so at a time that they start to ask for proof. Below that, and for capital withdrawals, no one cares as long as the beneficiary is enrolled.
Perfect. That's exactly what we want to do, move the funds to TFSA.
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Jun 12, 2008
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Ripley
Yes, about to do it for the fifth and sixth time. Never been asked what it was being used for.
[OP]
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I'm with RBCDI, do I just move RESP funds to our chequing account? Had not made any withdrawal but looking like I will have to soon.
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Jun 12, 2008
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Ripley
alanbrenton wrote: I'm with RBCDI, do I just move RESP funds to our chequing account? Had not made any withdrawal but looking like I will have to soon.
I am with RBC but not DI. I had to show them a letter saying the kid was confirmed in the program. You used to have to contact the school for this letter but many of them have it available in the students' portal now and you just print it off. Once the bank had this letter on file I could just call the 1800 number and they would transfer the money to my chequeing account. I didn't need to show the letter every year. The student has to pay income tax on part of the money (grant & interest) when they file their taxes so we spread it out over the 4 years.
[OP]
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https://www.canada.ca/en/revenue-agency ... ps.html#q9

Interesting, can this $20,000/annual withdrawal be carried over to previous years? Say if my child is in third year, can we claim $20k x 3 in 2020?

6(i) Is there a maximum amount a beneficiary can receive as an EAP? What is considered reasonable?
No. As long as the payment qualifies as an EAP at the time it is made there is no maximum limit (see EAP introduction). It should be noted that on August 12, 2008, a yearly EAP threshold of $20,000, indexed annually by the Consumer Price Index, was established to assist promoters in determining the reasonableness of an EAP request. The CRA will not question legitimate EAP requests below $20,000, nor will the promoters be expected to assess the reasonableness of each expense item, as long as the conditions permitting an EAP are met. Refer to RESP Bulletin no 1R1.


Also, for transfer to RRSP, it's not like we can claim that $50k as a RRSP contribution and reduce taxable income that year, correct?

It is possible for some subscribers to reduce the payable tax by transferring their AIPs to their registered retirement savings plan (RRSP) or a spousal RRSP if they have accumulated enough contributions room. This transfer is limited to $50,000.

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