How AIPs are taxed
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How AIPs are taxed
An AIP is subject to two different taxes: the regular income tax and an additional tax of 20% (12% for residents of Quebec).
See Example – How AIPs are taxed.
Completing your income tax and benefit return
- Promoters report the AIPs in box 040 of T4A slip, Statement of Pension, Retirement, Annuity and Other Income, and send a copy to you. You include this as income on line 130 of your income tax and benefit return in the year you receive it.
- Calculate the additional tax using Form T1172, Additional Tax on Accumulated Income Payments From RESPs. Include a filled out copy of Form T1172 with your income tax and benefit return for the year you receive the AIP.
Note
You have to pay the additional tax by the balance due date for your regular tax, usually April 30 of the year that follows the year in which you received the AIP.
- Date modified:
- 2016-11-16