Need my son report RESP EAP as income in his 1040?

[luol2016]

We open RESP account in Canada for my son before moving to US.
We're RESP grantor, my son is beneficiary. He cashed out money (EAP) from account for university education. NR4 is issued for him with 15% tax withholding.

We report RESP income in annual return and paid tax. When my son receives distribution (EAP), need he report it in 1040 as his income?

I find one RBC document, is it applicable for our case?

Where someone else is a subscriber and/or contributor to
the RESP, and the RESP is a foreign grantor trust in respect
of such persons (as discussed earlier), a U.S. beneficiary
is not subject to U.S. income tax when they receive a
distribution from the RESP, provided the necessary U.S. tax
filings have been made.

https://ca.rbcwealthmanagement.com/docu ... c407a6943d

[DaveF1006]

Most important thing to consider is whether or not you son is considered a resident alien for income tax purposes when the distribution occurred. In the document link you provided, If he is under a student visa, he may be an exempt person meaning that he is a non-resident alien for income tax purposes. In the document link it states, "a subscriber or contributor to an RESP is not a U.S. person, "as they are generally not subject to U.S. tax (even though from a U.S. tax perspective, the RESP is a foreign grantor trust with respect to these non-U.S. persons)"

The document further states that a US person (resident alien), "if the beneficiaries of the RESP are U.S. persons or your spouse, the RESP will continue to be a foreign grantor trust to you and you will continue to be subject to tax on the income".

Hope this helps!!