An accumulated income payment (AIP) is a payment from your registered education savings plan (RESP) that is not:
AIPs are shown in box 040 of your T4A, Statement of Pension, Retirement, Annuity and Other Income slips. Include the total of all AIPs on line 130 of your tax 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);
Complete Form T1172, Additional Tax on Accumulated Income Payments from RESPs, to calculate the additional tax. For more information, see Registered Education Savings Plans (RESPs).
Under proposed changes, you may have to pay a new tax if you are a specified employee (an employee dealing with an employer in a non-arm's length relationship or with a significant equity interest in their employer) and contributions your employer made to an EPSP that are allocated to you for the year exceed a threshold. The threshold is equal to 20% of your employment income from the employer for the year.
For more information, and to calculate your threshold and tax payable on this excess amount, use Form RC359, Tax on Excess Employees Profit-Sharing Plan Amounts for 2012.
If you are subject to this new tax, you may be eligible to claim a deduction at line 229.
Under Quebec provincial income tax legislation, you must pay a special tax equal to the provincial credit on the initial purchase of Quebec labour-sponsored venture capital corporation (LSVCC) shares, if you redeemed your shares to participate in the Home Buyers’ Plan (HBP) or the Lifelong Learning Plan (LLP), but did not purchase replacement shares within the prescribed time.
Under proposed federal changes, a similar federal tax has been introduced effective for 2012 and subsequent years.
For 2012, if you are filing a paper return, include on line 418 of Schedule 1 the total of the amounts shown in boxes F and L1, plus 60 % of box L2 of your Relevé 10 information slips. Attach a copy of your Relevé 10 slips to your return. If you have already filed your 2012 return or are filing electronically, you must request an adjustment to your return for 2012 to report this special tax and include a copy of your Relevé 10 slips.
On line 418 of Schedule 1, enter the amount from line 10, 13, or 16 (whichever applies) from Form T1172, Additional Tax on Accumulated Income Payments from RESPs (if applicable), and the amount from line 10 from Form RC359, Tax on Excess Employees Profit-Sharing Plan Amounts for 2012 (if applicable), and the amount calculated as instructed above under “Tax related to the non-purchase of replacement shares in a Quebec labour-sponsored fund.”
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