I requested an RESP withdrawal for my child. The financial institution did not ask what portion/type of the RESP total we wanted to withdraw. I made the assumption they would split it between the EAP (grants/earnings) and our contributions (from our taxed income contributions) They did not and the full amount withdrawn was classified as an EAP and now my daughter owes a lot of tax. If we had split the amount up and taken out some from the EAP and some from our contributions then the tax owed would have been minimal. Is there any way now to change the type of RESP that was issued from the bank so that it reduces her actual income from the T4A and thus reduces her taxes owed
Unfortunately, when doing your taxes, the information has to be entered as seen on the information slip as that information has already been entered in your file at the Canada Revenue Agency (CRA). You may wish to discuss this with the institution who filed the information slip or the CRA themselves by calling them at 1-800-959-8281.
Thank you for choosing TurboTax.