Additional tax on RESP accumulated income payments

An accumulated income payment (AIP) is a payment from your registered education savings plan (RESP) that is not:

• an educational assistance payment (EAP)
• a payment to a designated educational institution in Canada
• a refund of contributions to the subscriber or to the beneficiary
• a transfer to another RESP
• repayments under a Canada Education Savings Program (CESP) or a Provincial Education Savings Program

AIPs are shown in box 040 of your T4A slips. Include the total of all AIPs on line 13000 of your return.

There is an additional tax on this amount. However, the amount may be lowered or reduced to zero if all of the following conditions are met:

• You are the original subscriber or the spouse or common-law partner of a deceased original subscriber (if there is no other subscriber)
• You contribute, or the promoter transfers, all or part of the AIPs to your RRSP, PRPP or SPP or your spouse's or common-law partner's RRSP or SPP in the year the AIPs are received or in the first 60 days of the following year
• You deduct all of the RRSP, PRPP or SPP contribution on your tax return in the year the payments were received

If you received an AIP from a registered education savings plan (RESP) in the year, you may have to pay an additional tax on all or part of the amount shown in box 040 of your T4A slips. Complete Form T1172, Additional Tax on Accumulated Income Payments from RESPs. For more information, refer to Guide RC4092, Registered Education Savings Plans (RESPs).

Tax on excess employees profit-sharing plan (EPSP) amounts

You may have to pay a tax if both of the following apply:

• You are a specified employee (an employee dealing with an employer in a non-arm's length relationship or with a significant (10% or more) equity interest in their employer or in any other corporation that is related to their employer)
• Your employer made contributions to your EPSP for the year that are more than a threshold equal to 20% of your employment income from that employer for the year

Complete Form RC359, Tax on Excess Employees Profit Sharing Plan Amounts.

Tax related to not purchasing replacement shares in a Quebec labour-sponsored fund

You must pay a special tax if you redeemed your shares in a Quebec labour-sponsored fund to participate in the Home Buyer's Plan (HBP) or the Lifelong Learning Plan (LLP), but did not buy replacement shares within the prescribed time.

The special tax is the portion of the federal tax credit that you received for the acquisition of the shares that were redeemed to participate in the HBP or LLP and were not replaced within the prescribed time.

Report on line 41800 of your return the total of the amounts from boxes F and L1, plus 60% of box L2 and 75% of box L3 of your Relevé 10 information slips (official slip for the Province of Quebec).

Forms and publications

• Get a T1 income tax packagese procurer une trousse d'impôt T1
• Guide RC4092, Registered Education Savings Plans (RESPs)
• Form RC359, Tax on Excess Employees Profit-Sharing Plan Amounts
• Form T1172, Additional Tax on Accumulated Income Payments From RESPs
• Information Circular IC93-3R2, Registered Education Saving Plans

Related links

• Registered Education Savings Plans (RESPs)
• RRSPs and related plans
• Line 13000 – Other income
• Line 22900 – Other employment expenses