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
