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Lina contributes $2,000 to her child's resp during the year. how much may lina deduct for that contribution?

a. $400
b. $2,000
c. $0
d. $1,400

User Azarro
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1 Answer

4 votes

Final answer:

Contributions to an RESP, such as the $2,000 made by Lina, are not tax-deductible, therefore she cannot deduct any amount for this contribution.

Step-by-step explanation:

Lina's contribution to her child's RESP (Registered Education Savings Plan) doesn't provide her with an immediate tax deduction. The RESP is a savings vehicle for post-secondary education that allows savings to grow tax-free until the beneficiary withdraws them for educational purposes. Unlike RRSP contributions, which are deductible from your income, RESP contributions are not deductible on your personal tax return. Therefore, the correct answer to how much Lina may deduct for that contribution is $0.

User Frostrock
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