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posted Apr 13, 2024 12:56:09 PM

RDSP "Reinvested Dividend/Interest"

Is "Interest earned or paid" and/or "Reinvested Dividend/Interest" (done automatically) in an RDSP account considered "interest, dividend or partnership income not reported on a slip" in TurboTax? (Those amounts were not included on my T5.)

 

If so, would they be considered "Income from Eligible Dividends from Canadian Corporations" or "Income from Other than Eligible Dividends from Canadian Corporations"? Reinvested Dividend/Interest amounts are from Canadian Dividend Fund, Canadian Balance Fund, and US Equity Fund.

 

Thank you!

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Moderator
Apr 14, 2024 3:50:58 PM

An RDSP works similar to an RRSP in that you are not taxed on interest earned. You are only taxed when you withdraw money from your RDSP account. The same thing goes for dividends. If you reinvest the dividends inside the account without removing them from the account, there is no tax consequences for that either, and so this doesn't need to be reported on your tax return.