Revised Income Brackets for Additional CESG
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
Information Bulletin
- Number:
- CESP/PCEE-2014/15-002-608
- Date:
- December 19, 2014
- Subject:
- Revised Income Brackets for Additional Canada Education Savings Grant (Additional CESG)
Previous bulletin
This Information Bulletin updates the Information Bulletin CESP/PCEE-2013/14-003-561 dated December 6, 2013.
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 the Additional CESG have been indexed for 2015.
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 family net 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 2015 indexation adjustment for personal income tax, benefit amounts, and the annual dollar limit for Tax-Free Savings Accounts (TFSAs). Due to this indexation adjustment, income brackets for Additional CESG eligibility have been established for 2015.
The following table identifies the 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.
|
Year |
First threshold
|
Second Threshold
|
|---|---|---|
| 2015 | $44,701 or less | $44,701 but not more than $89,401 |
| 2014 | $43,953 or less | $43,953 but not more than $87,907 |
No change to Basic CESG
Calculations for Basic CESG remain unchanged at 20% of RESP contributions per beneficiary per year.
Updated RESP promoter tools
Due to the above changes, the RESP promoter tools will be updated to reflect these changes in the near future. Please consult the RESP and CESP Promoters page for the most recent version of the tools.
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.