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Email this8:54 am
April 20, 2018
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If I need a laptop now but I dont start school for another 6 months. Maybe even more then a year can i still claim it as School expense down the line. How long can I take until I cant claim it as a RESP/School expense? Thanks.
10:02 am
September 11, 2013
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For income tax purposes students cannot deduct expenses such as computers. Pretty much limited to tuition, maybe moving and child care expenses too. Check out this link, it has all the tax info for students:
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p105.html
What do you mean by RESP expense - ? You can spend all the money you get out of your RESPs on beer as far as the gov't is concerned.
12:10 pm
September 22, 2017
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Are you referring to the Life Long Learning plan?
Allows 10k per year, Max 20k withdrawals.
You just need to fit the criteria for the withdrawals. 3 months, eligible education institution, etc....
12:27 pm
September 11, 2013
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Maybe Eric is, though the the Lifelong Learning Plan (LLP) involves withdrawals from RRSPs, nothing to do with RESPs.
3:30 am
December 12, 2015
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I think what he is referring to is that some RESP plans actually make you keep and show them receipts for education related expenses. Check with your individual plan, Eric, to see if you need to provide receipts and what the specific rules are. Most plans just pay out sums over four years of post highschool education without requiring any proof of what you purchased.
5:02 am
September 11, 2013
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Mary, that's interesting, which specific plans have you run into that make you show receipts? I'd like to look into that, as I've seen nothing to that effect in my reading. And are you saying you have to have receipts before they'll give you money, or they make you (how?) repay the money if you haven't spent it to their liking? There is is no such requirement in the RESP rules, they're adding a lot of work for themselves and for the recipients, and without any legal requirement or even justification for that (as far as I know).
8:51 am
February 27, 2018
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One of my grandsons is starting college this fall. He wants to draw some money from the registered education savings plan (RESP) I set up for him and his siblings several years ago and asked me if there are any limitations on how it can be spent.
As far as Ottawa is concerned, there aren’t. As long as the money is used for educational purposes, just about anything goes. There is no published list of eligible expenditures and students are not required to submit receipts (although it’s a good idea to keep them in case there are ever any questions.) As long as the expense can be legitimately argued to be for education, it’s acceptable.
That means RESP money can be used for much more than tuition, books, and residence. A student could use it to buy needed equipment such as a laptop, desk, or tablet. Some money could be used to purchase a meal plan or to pay for transportation to the school. Even costs like athletic or student activity fees would qualify.
Nor are RESP beneficiaries required to study in Canada. There are no geographic limits on where the money is used; if your brilliant child gets accepted to Harvard, the government has no objection. Even distance education courses at accredited institutions qualify.
Source -
9:12 am
September 11, 2013
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It's true - from canada.ca website: "To withdraw money from an RESP, contact your RESP provider. They will ask to see official proof of enrollment before issuing the Educational Assistance Payment. They may also provide you with a list of allowable expenses that the money can be used for, or they may ask for receipts for school purchases to prove the money is being spent on allowable educational expenses. Because they are responsible for administering the RESP in accordance with the Income Tax Act, your RESP provider determines what is considered a “reasonable” expense (i.e. one that can be paid for with the savings). Any expense that is in accordance with the Act and the terms of the plan would be considered reasonable. One way to decide if a school expense is reasonable is to ask yourself whether or not this purchase will serve to further the student’s studies."
Note that these restrictions apply only to the EAP, i.e. the grants and income earned portion of the RESP account. There are no restrictions on how the original contributions are spent when they are withdrawn.
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