GOVERNEMNT GRANT
GOVERNEMNT GRANT
- For 2013, the additional CESG rate on the first $500 contributed to an RESP for a beneficiary who is a child under 18 years of age is:
- 40% (extra 20% on the first $500), if the child’s family has qualifying net income for the year of $43,561 or less; and 30% (extra 10% on the first $500), if the child’s family has qualifying net income for the year that is more than $43,561 but is less than $87,123.
The following chart gives you a brief overview of how the CESG is calculated depending on your family net income:
| Canada Education Savings Grant summary chart | |||
| Family net income for 2013 | Family net income up to $43,561 | Family net income between $43,561 and $87,123 | Family net income of more than $87,123 |
| CESG on the first $500 of annual RESP contribution | 40% = $200 | 30% = $150 | 20% = $100 |
| CESG on $501 to $2,500 of annual RESP contribution | 20% = $400 | 20% = $400 | 20% = $400 |
| Maximum yearly CESG depending on income and contributions | $600 | $550 | $500 |
| Lifetime maximum CESG for which you may qualify | $7,200 | $7,200 | $7,200 |
Every child under age 18 who is a Canadian resident will accumulate $400 (for 1998 to 2006) and $500 (from 2007 and subsequent) of CESG contribution room. Unused CESG contribution room is carried forward and used when RESP contributions are made in future years provided that the specific contribution requirements for beneficiaries who attain 16 or 17 years of age are met.
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