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I wanted to go to school and my grandparents took out 5,000 from an RESP that is saved up. I then decided on the first day of classes the school wasn't right for me, I took the 5,000 and gave it back to my grandparents I was unaware that I had to claim the RESP as income so I was audited, the 5,000 was never used and was giving back to my grandparents I then only made 10,000 that year but because of the 5k on top of it I have to pay back my workers income tax benefit since the government thinks I made 15,000 when I really only had 10,000 to live off of.. is there a way I can get around it? I have to pay 2200 back this year and its not going to be easy!
 

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Have your grandparents ask the RESP Holder to break down the withdrawal. Only part of the withdrawal is taxable and yes you are on the hook to pay tax on that.
 
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