Revised CESG Income Brackets
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).
- December 23, 2011
- Revised Income Brackets for Additional Canada Education Savings Grant (CESG).
This Information Bulletin updates the Information Bulletin CESP/PCEE-2010/11-005-419 dated January 25, 2011.
The purpose of this Information Bulletin is to inform Promoters and Trustees that the income brackets used to determine the rate of payment for the Additional CESG have been indexed for 2012.
Income Brackets to Determine Additional CESG
The Additional CESG is subject to subsection 5(4)(a) of the Canada Education Savings Act which uses the adjusted income for an eligible individual to establish the first and second threshold in order to calculate the Additional CESG. These amounts are indexed yearly based on inflation.
The Canada Revenue Agency has released the Indexation Adjustment for Personal Income Taxes for 2012. Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2012.
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.
Additional CESG rate is 20% when the adjusted family net income is…
Additional CESG rate is 10% when the adjusted family net income is more than… (second threshold)
|2012||$42,707 or less||$42,707 but not more than $85,414|
|2011||$41,544 or less||$41,544 but not more than $83,088|
No change to Basic CESG
Calculations for Basic CESG remain unchanged at 20% of RESP contributions per beneficiary per year.
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 using the link below:Promoters Tools page
Questions on this Information Bulletin should be directed to the Canada Education Savings Program by e-mail at email@example.com or by calling 1-888-276-3624.
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