Canada Education Savings Grant

Disclaimer: RESP promoters

The information contained on this page is technical in nature and is intended for Registered Education Savings Plan (RESP) and Canada Education Savings Program promoters. For general information, visit the RESP section.

Official title: Revised Income Brackets for additional Canada Education Savings Grant (CESG)

Information Bulletin

Number:
CESP/PCEE-2009/10-002-373
Date:
January 4, 2010
Subject:
Notice #373 - Revised Income Brackets for additional Canada Education Savings Grant (CESG).

Previous Bulletin

This Information Bulletin updates the Information Bulletin PCEE/CESP-2009/10-001-358 dated August 18, 2009.

Purpose

The purpose of this Information Bulletin is to inform Promoters and Trustees that the income brackets used to determine the rate of payment for additional CESG have been indexed for 2010.

Income Brackets to Determine Additional CESG

The additional CESG is subject to subsection 5(8) of the Canada Education Savings Act which requires the income brackets (i.e. $35,000 and $70,000) established for additional CESG eligibility purposes be indexed yearly based on inflation.

The Canada Revenue Agency has released the Indexation Adjustment for Personal Income Taxes for 2010. Due to this indexation adjustment, income brackets for additional CESG eligibility have been established for 2010.

The following table indicates income brackets used to determine the rate of the additional CESG on the first $500 or less of Registered Education Savings Plan (RESP) contributions per beneficiary per year.

In the year... The additional CESG rate is 20% when net family income is… The additional CESG rate is 10% when net family income is more than…
2010 $39,065 or less $39,065 but not more than $78,130
2009 $38,832 or less $38,832 but not more than $77,664
2008 $37,885 or less $37,885 but not more than $75,769

No Change to Basic CESG

Calculations for basic CESG remain unchanged at 20% of RESP contributions per beneficiary per year.

Promoter Tools

Due to the above changes, the RESP Provider User Guide, the InfoCapsules and the CESG-CLB Quick Facts will be updated and available for download on the Promoter Tools page.

Contact Us

Questions on this Information Bulletin should be directed to the Canada Education Savings Program by e-mail at cesp-pcee@hrsdc-rhdcc.gc.ca or by calling 1-888-276-3624.

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