T1172 - fill out and auto calculate/complete form online

Canada Revenue
Agency

Agence du revenu
du Canada

ADDITIONAL TAX ON ACCUMULATED
INCOME PAYMENTS FROM RESPs

Protected B
when completed

Use this form to calculate the amount of additional tax you have to pay on accumulated income payments (AIPs) you received in 1999 and later years from
registered education savings plans (RESPs).

What are accumulated income payments?

AIPs are amounts, usually paid to the subscriber, of the income earned from an RESP other than refunds of contributions, educational assistance payments
(EAP), payments to a designated educational institution in Canada, transfers to another RESP or repayments under the Canada Education Savings Act or
under a designated provincial program.

An RESP may (after 1997) allow for AIPs when the following conditions are met:

•

the payment is made to, or for, a subscriber under the RESP who is a resident of Canada;

•

the payment is made to, or for, only one subscriber of the RESP.

Also, any one of the following three conditions must apply:

•

the payment is made after the year that includes the 9th anniversary of the RESP and each individual (other than a deceased individual) who is or was
a beneficiary has reached 21 years of age and is not currently eligible to receive an EAP;

•

the payment is made after the year that includes the 35th anniversary of the RESP, unless the RESP is a specified plan (a non-family plan where the
beneficiary is entitled to the disability tax credit for the beneficiary's tax year that includes the 31st anniversary of the plan) in which case the payment is
made after the year that includes the 40th anniversary of the RESP; or

•

all beneficiaries under the RESP are deceased when the payment is made.

AIPs are reported in box 040 in the "Other information" section of the T4A slips issued in the name of the recipient. The recipient has to include the total of all
AIPs on line 13000 of his or her tax return for the year the payments are received and pay the regular tax. These payments are also subject to an additional tax.
However, if you receive an AIP, the amount subject to the additional tax may be reduced or eliminated if all the following conditions are met:

•

you are the original subscriber of the RESP (this excludes a person who becomes a subscriber because of the death of the original subscriber) or, where
there is no other subscriber, the spouse or common law partner of a deceased original subscriber of the RESP;

•

you contribute an amount not more than the amount of the AIPs to your registered retirement savings plan (RRSP), or your spouse’s or common-law
partner’s RRSP, in the year the AIPs are received or in the first 60 days of the following year; and

•

your RRSP deduction limit allows you to deduct the amount contributed to your or your spouse’s or common-law partner’s RRSP. Claim the deduction for
the year in which any payments are made.

Do you have to complete this form?

If you receive AIPs in 1999 or later years, you have to complete this form to calculate the additional tax. Complete either Part A or Part B (whichever applies)
and if you are a resident of Quebec, Part C.

Attach a copy of this form to your tax return for the year you received the AIPs. You have to pay the additional tax by the balance due date for your regular tax,
usually April 30 of the year that follows the year in which you received the AIP. Where the recipient is a trust, the balance due date is 90 days after the end
of the tax year of the trust in which the payments are received. For information about the balance due date in the case of a deceased person, see guide
T4011, Preparing Returns for Deceased Persons, which is available at www.cra.gc.ca/forms or by calling 1-800-959-2221.

Additional information

For more information about AIPs and RESPs, see the Information Sheet RC4092, Registered Education Savings Plans, which is available
at www.cra.gc.ca/forms or by calling 1-800-959-2221.

Identification

Last name (print)

First name and initials (print)

Social insurance number

Address

Calculating the additional tax on accumulated income payments (AIPs) received during the year

Part A – Complete this part if you are the original subscriber of the RESP (this excludes a person who becomes a subscriber because of the death of the

original subscriber) or, where there is no other subscriber, the spouse or common law partner of a deceased original subscriber of the RESP.

Total of all AIPs you received or had transferred by the promoter to an RRSP on your behalf, during the year.

This amount is shown in box 040 in the "Other Information" section of all the T4A slips issued to you for the year

the payments were received. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

68270

Total amounts you or your promoter contributed on your behalf to your RRSP or your spouse's
or common-law partner's RRSP, in the year you received the AIPs or the first 60 days of the
following year, that you deducted on line 20800 of your tax return for the year you received the

AIPs. This amount cannot be more than your RRSP deduction limit for that year. . . . . . . . . . .

Amount from line 1 or 2, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Maximum lifetime RRSP contribution limit that can be used to reduce or eliminate the amount

of AIPs subject to the additional tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

50,000

Total of all amounts used to reduce the amount of additional tax payable on AIPs received in
previous years (if applicable). This amount is the total of the amount entered at line 5 of all

T1172 forms you filed for 1998 and at line 7 of all T1172 forms you filed for 1999 and later. . . –

Line 4 minus line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . =

Amount from line 3 or 6, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

–

Amount of AIPs subject to the additional tax: Line 1 minus line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rate of the additional tax on AIPs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20%

10.

Additional tax on AIPs: Line 8 multiplied by line 9. If you were a resident of Quebec on December 31 of the year you
received the AIPs, complete Part C below. Otherwise, enter this amount on line 41800 of your tax return for the

year you received the AIPs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part B – Complete this part only if Part A does not apply to you.

11.

Total of all AIPs you received from RESPs during the year. This amount is shown in box 040 "Other information"

area of all T4A slips issued to you, for the year the payments were received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

68280

12.

Rate of the additional tax on AIPs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20%

13.

Additional tax on AIPs: Line 11 multiplied by line 12. If you were a resident of Quebec on December 31 of
the year you received the AIPs, complete Part C below. Otherwise, enter this amount on line 41800 of your tax return

for the year you received the AIPs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . =

Part C – Complete this part only if you were a resident of Quebec on December 31 of the year you received the AIPs.

14.

Enter the amount from line 10 or 13, whichever applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15.

Adjustment for residents of Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

60%

16.

Additional tax on AIPs: Line 14 multiplied by line 15. Enter this amount on line 41800 of your tax return for the year

you received the AIPs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Certification

I certify that the information given on this form is, to the best of my knowledge, correct and complete.

Signature

Date

Privacy Act, Personal Information Bank number CRA PPU 005

T1172 E (23)

(Vous pouvez obtenir ce formulaire en français à www.arc.gc.ca/formulaires)