Quick answer: RESP tax slips in 90 seconds
RESP tax slips depend on the type of withdrawal you make. Educational Assistance Payments (EAPs) include government grants and investment growth. EAPs are taxable to the student, and your RESP provider reports them on a T4A slip in box 042. A refund of contributions returns the money you put in. It is not taxable and does not appear on a T4A. Accumulated Income Payments (AIPs), which is the withdrawal of investment earnings, apply in only a few cases. When paid, AIPs are taxable as income, plus an extra 20% tax (12% in Quebec). Box 042 amounts go on line 13000 of the student’s tax return.
Speak to an Embark specialist to learn more about your specific circumstances.
Key Takeaways
- EAPs (grants + growth) are taxable to the student and reported on a T4A in box 042, line 13000.
- Refunds of contributions are tax-free and don’t generate a tax slip — that is normal.
- AIPs are rare, reported in box 040, and come with an extra 20% tax (12% in Quebec) on top of regular tax.
- Most RESP slips go to the student, not the parent or grandparent.
- In the first 13 weeks, EAPs are capped at $8,000 (full-time) or $4,000 (part-time, per 13 weeks).
RESP tax slips — a quick overview
Tax season can feel busy when your child starts school. The good news is that Registered Education Savings Plan (RESP) withdrawals follow a few clear rules. Once you know which “bucket” the money came from, the right slip and the right tax line usually become easy to find.
Most RESP slips — whether from Embark or another provider — go to the student, not the parent or grandparent. That is because the taxable part of an RESP is meant to be reported in the student’s name. Students often have a low income and big tuition credits, so any tax owed on RESP money is often small.
This guide walks through which RESP withdrawals create taxable income, which tax slips you can expect, and where to enter the amounts. For a broader look at the topic, see our overview of RESP taxes and our guide: Are RESP withdrawals taxable?. With Embark, you can easily withdraw digitally through our website.
The RESP slip map (start here)
Think of an RESP as three buckets. The slip you receive depends on which bucket the money came from.
- Contributions — the money the subscriber put into the plan.
- Grants and growth — government money plus investment earnings. This bucket is paid out as an EAP.
- Accumulated Income Payments (AIPs) — used only in some cases, like when the RESP closes and the funds were not used for school.
Match the bucket to the slip in this table:
| Withdrawal type | What it is made of | Who gets the money | Taxable to whom | Slip and box | Where it goes / gotchas |
|---|---|---|---|---|---|
| EAP (Educational Assistance Payment) | Government grants plus investment growth | Student | Student | T4A, box 042 | Line 13000 of student’s return. First-13-weeks cap applies. |
| Refund of contributions (often called “PSE”) | Money the subscriber put into the plan | Subscriber or student | No one. Not taxable. | No T4A | Not reported as income. Keep your records. |
| AIP (Accumulated Income Payment) | Investment growth paid out when the plan ends without being used for school | Subscriber | Subscriber | T4A and Form T1172 | Regular tax plus an extra 20% (12% in Quebec). RRSP transfer may help in some cases. |
Many withdrawals mix two buckets. For example, a single semester’s payment might include EAP money and a refund of contributions. Each bucket follows its own tax slip rules, even when the money is paid out together.
T4A box 042: what an EAP slip means
An Educational Assistance Payment, or EAP, is the part of an RESP withdrawal that comes from government grants (such as the Canada Education Savings Grant) and investment growth. To make an EAP, the student must be enrolled at a qualifying school.
Your RESP provider (the CRA calls this a “promoter”) sends the student a T4A slip. The total EAP amount for the year shows up in box 042. CRA’s rule is clear: box 042 is for EAPs only. It does not include a refund of contributions.
Where do I report box 042?
The student enters the box 042 amount on line 13000 (“Other income”) of their tax return. The slip is filed like any other T4A.
Quick checklist if the student receives a T4A:
- Check that the student’s name and Social Insurance Number on the slip are correct.
- Add the box 042 amount to line 13000 on the student’s tax return.
- Keep proof of school enrollment with tax records.
- If the slip arrives late, ask a tax professional about updating the return.
Want to learn more about how this part of the RESP works? Read our guide on the role EAPs play in RESPs or speak with one of our specialists at Embark.
Refund of contributions (often called “PSE”): why there is usually no slip
Your contributions to an RESP were made with after-tax money. So, when you take them back out, they are not taxed again. CRA calls this a “refund of contributions.” Many RESP providers call it a “Post-Secondary Education” withdrawal, or PSE.
A refund of contributions is not reported in box 042 and does not appear on a T4A. That is by design.
A few quick reminders:
- The subscriber (the person who opened the RESP) usually receives or directs the refund of contributions.
- You can pass this money to the student to help with school costs.
- Keep your withdrawal records — Embark customers can see a history of EAP and contribution withdrawals in their online account, but it is worth keeping your own copy too.
Common confusion: “Why didn’t I get a slip?”
Many families worry when no slip shows up for a PSE withdrawal. In most cases, this is the correct outcome. Refunds of contributions are not income, so they are not reported as income.
For more help with planning these payments, see withdrawing from your RESP or get in touch with one of our specialists.
AIPs: what they are and why they include an extra tax
An Accumulated Income Payment (AIP) is investment growth paid to the subscriber when an RESP ends without being used for school. AIPs are different from EAPs. They are taxed differently.
Two taxes can apply to an AIP:
- Regular income tax. The AIP is added to the subscriber’s income for the year.
- An extra tax of 20% (12% in Quebec) on top of the regular tax.
CRA also asks subscribers to complete Form T1172 when an AIP is taken. This form helps calculate the extra tax.
Is there a way to lower the extra tax?
In some cases, you can move up to $50,000 of an AIP into your RRSP (or a spousal RRSP). Certain rules must be met, including having enough RRSP room, the RESP being in its 10th year or later, and each beneficiary no longer being eligible to receive an EAP. This is an important step, so most families talk to a tax professional first to make sure it’s a smooth process. Learn more in our guides on accumulated income payments and how to transfer your RESP funds to your RRSP.
The first 13 weeks: a planning note that affects your slip
When a student first starts a full-time program, CRA caps EAPs at $8,000 in the first 13 weeks. Part-time programs have a $4,000 EAP cap that resets every 13 weeks. These figures reflect the current CRA rules and can change—check canada.ca for the latest.
Families often handle this by:
- Taking a smaller EAP at the start (which shows in box 042 of the student’s T4A).
- Adding a refund of contributions to cover more school costs without a slip.
This is a planning choice, not a tax loophole. Each bucket still creates its own slip outcome.
Real-life scenarios
These rules can feel dense, or dry. These short examples may help.
Scenario 1: First semester, full-time student
Maya starts a four-year degree in September. Her parents withdraw an EAP plus a refund of contributions for the fall term.
- Slip outcome: Maya gets a T4A with the EAP amount in box 042. She enters this on line 13000.
- The refund of contributions is not on a T4A.
- Because Maya does not work outside of school, her other income is low; as a result, her tax owing on the EAP is often small. Tuition credits may help, too. See how to file taxes as a student.
Scenario 2: Part-time student
Jordan studies part-time at a college. His parents take a smaller EAP across the term, plus a refund of contributions for textbooks.
- Tax slip outcome: Jordan gets a T4A with the EAP amount in box 042.
- The contribution part has no tax slip.
- Part-time EAP caps are lower, so plan your withdrawals accordingly.
Scenario 3: A T4A arrives late
Priya files her tax return in March. In May, she receives a T4A she did not know about, with an EAP in box 042. What Priya should do:
- Speak to a tax professional about updating the return. The CRA has a “Change my return” service that can help with simple updates.
- Keep the slip with the rest of her records.
Scenario 4: RESP not used for school
Hassan and Aisha’s child decides not to attend post-secondary. No EAP has been paid out. They speak with their RESP provider about their options. If the RESP is in its 10th year or later and the beneficiary no longer qualifies for an EAP, some growth may be paid to Hassan (the subscriber) as an AIP.
- Tax slip outcome: Hassan receives a T4A for the AIP and completes Form T1172.
- An extra tax of 20% (12% in Quebec) is also applied on top of regular tax.
- Hassan and Aisha can also look at whether some AIP could be moved into an RRSP first. See our guide on how to transfer your RESP funds to your RRSP.
A few helpful reminders
- Most RESP slips go to the student. If you only see a slip in your child’s name, that is normal.
- Not receiving a tax slip is normal for refunds of contributions.
- One withdrawal can have two parts (EAP and contributions). Each part follows its own tax slip rule.
- Tax rules can change. Check the CRA website or speak with a professional for the current details.
Final thoughts
RESP taxes can look hard at first, but the three-bucket model makes them simpler. Contributions usually come back tax-free with no slip. EAPs show up on a T4A in box 042 in the student’s name and go on line 13000. AIPs are rare and come with an extra tax, but planning may help.
If your family is still building savings for school, an RESP from Embark can help you get started. And when it is time to use the plan, our guides on withdrawing from your RESP and the smart way to withdraw can help you build a clear plan.
This article is for general information only. For professional advice, feel free to speak to an Embark specialist.
Embark is Canada’s education savings and planning company. The organization aims to help families and students along their post-secondary journeys, giving them innovative tools and advice to take hold of their bright futures and succeed.
