Is there a tax deduction for RESP?

Unlike RRSPs, contributions to an RESP are not taxdeductible nor are they taxable when withdrawn. The main benefit of the RESP is the ability to have all earnings (capital gains, dividends and interest) on the investments inside the RESP accumulate tax-free until withdrawn.

Is there a tax deduction for RESP?

What kind of tax rules apply to an RESP? While the contributions you make to your plan are not tax-deductible, the investment income generated in your savings plan – income such as interest, dividends or capital gains – is not taxed until the funds are withdrawn from the plan.

Do you pay income tax on RESP?

Students who receive money from an RESP must claim their Educational Assistance Payment as income. Since students typically have limited income while in school, however, they may not be required to pay any income tax on this amount. … Your RESP provider will issue the student a T4A slip for income tax purposes.

Do RESP contributions reduce taxable income?

You will not be taxed on the amount you contributed to the RESP, but you will have to pay taxes on the money that you earned in your plan as interest. … You may be able to reduce the taxes you have to pay by transferring your accumulated income to either your or your spouse’s Registered Retirement Savings Plan (RRSP).Dec 5, 2017

What is the maximum age for RESP?

A beneficiary is eligible for the CESG up to the end of the calendar year in which they reach age 17, have a Social Insurance Number (SIN), and are a Canadian at the time of the RESP contribution. If a child is between the ages of 15 and 17, special rules will apply.