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Is the RESP tax deductible?

Question from: Lise, Grenville

OUR ANSWER

You cannot deduct RESP contributions on your tax return, but these are not taxed when withdrawn from your plan. In addition, the funds in your RESP grow tax-free.

However, the educational assistance payments (EAPs) for your beneficiary’s education are taxable income once these are withdrawn from the plan. EAPs are taxed in the beneficiary’s hands, but since students benefit from lower tax rates, they usually pay little to no tax on these amounts.

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