Tag Archives: RESP

RRSP or RESP: Is Lack of Information Affecting Choices? 49% of Quebec’s Families Don’t Know About RESP Grants

RRSP or RESP: Is Lack of Information Affecting Choices? 49% of Quebec's Families Don't Know About RESP Grants

RRSP or RESP: Is Lack of Information Affecting Choices? 49% of Quebec's Families Don't Know About RESP Grants:

More than half the families in Quebec prioritized the RRSP in 2015, while only a quarter invested in an RESP

QUEBEC CITY, Feb. 8, 2016 /CNW/ – With tax season around the corner, many Quebecers are wondering which investment vehicle to prioritize. A recent survey by the CROP polling firm commissioned by the RESP expert Universitas found that nearly half the families surveyed don't know about the financial advantages the RESP offers. Over the last year, only 27% of Quebec's families invested in an RESP, thus missing out on the generous government grants to which their children are entitled for post-secondary education. Results show that families continue to favour the more traditional RRSP (52%) and TFSA (33%). Furthermore, only 9% of the families surveyed believe that, based on their current situation, the RESP should be their first investment choice.

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Back-to-School Tax Credit 2013

 

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Back-to-School Tax Credit 2013

 

Ottawa, August 27, 2013 |www.GovernmentGrantsCanada.ca |

The Honourable Jim Flaherty, Minister of Finance, and the Honourable Kerry-Lynne D. Findlay, Minister of National Revenue, marked the start of the back-to-school season by highlighting tax relief that is helping Canadian families save more of their hard-earned money.

“As students head back to school this Fall, families are again facing the costs of textbooks, bus passes and extracurricular activities, which is why our Government offers tax relief to help families save more of their hard-earned money,” said Minister Flaherty.

“Our Government is pleased to help Canadian families with tax breaks to help them stretch their dollars further as they gear up for the return to school,” said Minister Findlay. “The tax relief introduced by our Government is saving the average Canadian family more than $3,200 a year in taxes.”

Examples of this tax relief include:

  • Children’s Fitness Tax Credit: Parents may claim a 15% non-refundable tax credit on an amount up to $500 for the feespaid relating to the cost of registering their child in a prescribed program of physical fitness activity.
  • Children’s Arts Tax Credit: Parents may claim a 15% non-refundable tax credit on an amount up to $500 for the fees paid relating to the cost of registering their child in a prescribed program of artistic, cultural, recreational or developmental activity.
  • Public Transit Tax Credit: Provides a 15% non-refundable tax credit on the cost of monthly public transit passes, and passes of longer duration, or electronic fare cards and weekly passes when used on an ongoing basis, for travel within Canada on public transit.
  • Tuition, Education and Textbook Tax Credits: Provide a 15% non-refundable tax credit on amounts paid for tuition and enrolment in post-secondary educational programs. Tax relief is also available for apprentices and other workers in regulated occupations who must pay to complete certification examinations.
  • Tax Exemption for Scholarships, Fellowships and Bursaries: Provides that certain post-secondary scholarships, fellowships and bursaries received in connection with a student’s enrolment in a program that qualifies for the Education Tax Credit may be fully or partially excluded from income. Elementary and secondary school scholarships and bursaries are not taxable.
  • Student Loan Interest Tax Credit: Provides a 15% non-refundable tax credit on interest paid on loans for post-secondary education received under the Canada Student Loans Act, the Canada Student Financial Assistance Act, or a similar provincial or territorial government law.
  • Student Loan Interest Tax Credit: Provides incentives to save for a child’s education on a tax-assisted basis. There is no annual limit for contributions to RESPs, and the lifetime limit on the amounts that can be contributed to all RESPs for a beneficiary is $50,000.

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The following

Alberta and Canada Grants & Loans for Students

may be of assistance:

• Alberta Maintenance Grant — for student aid recipients with small children.

• Alberta Part-time Grant — to assist part-time students.

• Alberta Completion Assistance Grant — to assist students completing their unfinished programs.

• Canada Student Grant for low and middle income students.

• Canada Student Grant for students with permanent disabilities.

• Canada Student for students with dependents

Visit http://studentaid.alberta.ca for further information.

 

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BC Government affirms Grant for RESP

BC Government affirms Grant for RESP

 

Aug 13,2013 | http://www.GovernmentGrantsCanada.ca | Vancover-BC

BC Government affirms Grant for RESP  is a new grant from the BC government will give $1,200 to children under seven if they have an RESP (registered education savings plan).

The program is called the BC Training and Education Savings Grant, and the government’s commitment to it was reaffirmed in the latest provincial budget.

“With the passing budget,” explained Peter Fassbender, minister of education, “we are ensuring that this money remains available for parents to save, not for the government to spend.”

All children born after January 1, 2007 who are BC residents are eligible. Parents must make an RESP for their children before their seventh birthday. When children turn six, the family must apply for the grant through their RESP provider. If the child is already six, the application will be done at the same time the RESP is opened.

The province is working with Human Resources and Skills Development Canada to implement the program, and the process is expected to take between 18 to 24 months. Once the program is in place, parents whose child is already six will receive a notice to apply for the grant.

The program aims to emphasize the importance of planning and saving early for a child’s post-secondary education.

An RESP is a special account where money can be saved for a child’s education tax-free. Money invested grows over time, and the account structure makes it easier for other family members to contribute.

The new grant replaces the Children’s Education Fund, which invested $1,000 for each child born in and after 2007. These invested funds will be put toward the grants

If the child ends up not pursuing post-secondary education after they graduate, the grant is returned to the government.

For more information on the BC Training and Education Savings Grant, please contact the BC Ministry of Education from Monday to Friday, 8:30 a.m. to 4:00 p.m. (PDT).

Telephone:1-888-879-1166

 

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