Additional amount of Canada Education Savings Grant - How much a child could receive
3. How much a child could receive
The additional amount of Canada Education Savings Grant (Additional amount of CESG) adds an additional 10% or 20% onto the first $500 or less contributed to the RESP annually. These contributions must have been made on or after January 1, 2005. The Additional amount of CESG can be paid on contributions made up until the end of the calendar year in which the child turns 17.
There is a lifetime grant limit of $7,200. This includes both the Canada Education Savings Grant (Basic CESG) and the Additional amount of CESG .
Income levels example
A child is born in 2011 and is named to an RESP. The family has an adjusted income of $32,000. This means the child will be eligible to receive the Basic CESG, plus an Additional amount of CESG of 20%.
Year Age of child (RESP beneficiary) Amount of grant room added annually Annual contributions made to RESP Contributions that qualify for the Basic CESG Contributions that qualify for the Additional amount of CESG Basic CESG paid Additional amount of CESG paid Total paid 2011 Newborn $500 $2,500 $2,500 $500 $500 $100 $600 2012 1 year old $500 $2,500 $2,500 $500 $500 $100 $600 2013 2 years old $500 $3,000 $2,500 $500 $500 $100 $600 2011-2013 Subtotal N/A $0 $8,000 $7,500 $1,500 $1,500 $300 $1,800
Table summary – The total amount put into an RESP is $9,800 ($8,000 in contributions plus $1,800 in grants).
Using the previous example, the following calculations can be used to determine the total Canada Education Savings Grant amounts that will be paid out:
- (3 x $2,500 in contributions that qualify for the Basic CESG) x 20% = A payment of $1,500
- (3 x $500 in contributions that qualify for the Additional amount of CESG) x 20% = A payment of $300
- $1,500 (Basic CESG) + $300 (Additional amount of CESG) = Total payment of $1,800
Note: If the primary caregiver's adjusted income changes, future eligibility for the Additional amount of CESG may be affected.
The amount of money that each child can receive in additional grant money depends on the adjusted income of the child’s primary caregiver.
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