About Qualifying Educational Programs in Canada:
About Educational Programs Outside Canada:
About the Canada Education Savings Grant and Family Income:
The Additional Canada Education Savings Grant is paid in addition to the first yearly Canada Education Savings Grant contribution of $500 in a child’s Registered Education Savings Plan (RESP) and it is paid based on the net family income of the child’s primary caregiver.
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About the Maximum RESP contribution Canada:
The maximum lifetime RESP contribution limit is $50,000 per child.
There is no annual limit on the RESP contributions. However, the Canada Education Savings Grant payment is based on a maximum of $2500 of contributions made per year.
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About RESP taxation:
There is no tax deduction when a RESP contribution is made. However, the money in the RESP grows tax-free. The money that was contributed to the RESP is returned tax-free. The money that was earned by the investment is taxed when it is withdrawn to pay for the child’s education.
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About setting up an RESP:
The subscriber makes contributions to the RESP. Contributions are not deductible from the subscriber’s income on their tax return. The contributions are paid back to the subscriber at the end of the contract if they are not paid out to the beneficiary. Subscribers do not have to include these contributions in their income.
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