Could you use a little bit of extra money to help cover the taxes on the products and services you buy?
Well, That's what the Goods & Services Tax Credit (GSTC) is for! Here's everything you need to know, starting with some definitions.
Want to begin saving for your child's future education endeavours? Learn about starting their RESP now!
An RESP is a registered savings account by the Government of Canada that allows savings for education, after high school, to grow tax-free. If you qualify, An RESP could also gain government money through the Canada Education Savings Grant and the Canada Learning Bond. It helps your family to save early for a child’s education after high school. It's a contract between an individual (other than a trust) who is the subscriber, and a person or organization, who is the promoter. The subscriber (or a person on behalf of the subscriber) makes contributions to the RESP, which then earns income. In return, the promoter of the plan agrees to pay the income as educational assistance payments to one or more beneficiaries designated in the contract.
Note: RESP contributions are not tax-deductible from the subscriber's income.
Canada Education Savings Grant
This grant from the Government of Canada was introduced in 1998, and can help you start saving for your child's education after high school. Your child can use the money for full-time or part-time studies in an apprenticeship program, CEGEP, trade school, college or university.
The CESG is based on contributions made to an RESP in respect of an eligible beneficiary and is comprised of two components:
What is the Basic CESG?
Basic CESG is a payment of 20% on RESP contributions made in respect of an eligible beneficiary, up until the end of the calendar year in which the beneficiary turns 17.
What is the Additional CESG?
The Additional Canada Education Savings Grant (A-CESG) is extra money from the Government of Canada available to help you save for your child's education after high school. This grant is in addition to the basic Canada Education Grant that you may already be receiving in your child's RESP.
Canada Learning Bond
The Canada Learning Bond (CLB) is money that the Government adds to a Registered Education Savings Plan (RESP) for children from low-income families. This money helps to pay the costs of a child’s full-time or part-time studies after high school at:
Posted on 10 Oct 2021