[Ontario] What exactly does RESP Income (EAP) include?
For University of Waterloo, it asks for RESP Income, which is defined as:
Registered Education Savings Plan, Scholarship Trust Fund, or other Education Savings Plan. Indicate only the Educational Assistance Payment (EAP) that you will be using for your first year of studies.
From my understanding of the definition, EAP at least in Ontario consists of 1) earnings (dividends, interest, capital gains, basically any growth) from the subscriber contribution and 2) CESG. So would a good estimate of EAP to be used be [1) + 2)] / number of school years? Also, if it's a Family RESP, can the older sibling use the CESG granted to the sibling as long as it's within $7,200? Thank you.
https://www.canada.ca/en/employment-soc ... #h2.3-h3.2
2.2 EAP components
You have already seen that promoters are responsible for maintaining notional accounts Footnote 2 in each RESP. EAPs can be paid only from the RESP earnings and incentive accounts. Contributions are not included in EAPs.
Accounts used for EAPs
A beneficiary can use the incentives and earnings from an RESP in an EAP to pay for their PSE.
Earnings: Interest and other income accumulated in an RESP from all RESP accounts.
CESG : CESG is comprised of two components: Basic CESG and Additional CESG. CESG payments are pooled into one CESG account for all beneficiaries in an RESP.
CLB (per beneficiary): As Canada Learning Bond (CLB) is an incentive that must be tracked for individual beneficiaries, promoters must have separate CLB accounts for each beneficiary in family plans.
Provincial incentives: Provincial incentives are paid into RESPs by a designated provincial program, such as the Saskatchewan Advantage Grant for Education Savings (SAGES), the British Columbia Training and Education Savings Grant (BCTESG) and the Quebec Education Savings Incentive (QESI). Separate accounts are required for each province.
Accounts used for subscriber's property
All contributions remain the property of the subscriber. While the subscriber can give contributions to a beneficiary to pay for PSE, they are not included in EAPs.
Assisted contributions: An assisted contribution is an amount of money deposited into an RESP by a subscriber that attracts a CESG payment for a beneficiary.
Unassisted contributions: An unassisted contribution is an amount of money deposited into an RESP by a subscriber that does not attract a CESG payment for a beneficiary.
Registered Education Savings Plan, Scholarship Trust Fund, or other Education Savings Plan. Indicate only the Educational Assistance Payment (EAP) that you will be using for your first year of studies.
From my understanding of the definition, EAP at least in Ontario consists of 1) earnings (dividends, interest, capital gains, basically any growth) from the subscriber contribution and 2) CESG. So would a good estimate of EAP to be used be [1) + 2)] / number of school years? Also, if it's a Family RESP, can the older sibling use the CESG granted to the sibling as long as it's within $7,200? Thank you.
https://www.canada.ca/en/employment-soc ... #h2.3-h3.2
2.2 EAP components
You have already seen that promoters are responsible for maintaining notional accounts Footnote 2 in each RESP. EAPs can be paid only from the RESP earnings and incentive accounts. Contributions are not included in EAPs.
Accounts used for EAPs
A beneficiary can use the incentives and earnings from an RESP in an EAP to pay for their PSE.
Earnings: Interest and other income accumulated in an RESP from all RESP accounts.
CESG : CESG is comprised of two components: Basic CESG and Additional CESG. CESG payments are pooled into one CESG account for all beneficiaries in an RESP.
CLB (per beneficiary): As Canada Learning Bond (CLB) is an incentive that must be tracked for individual beneficiaries, promoters must have separate CLB accounts for each beneficiary in family plans.
Provincial incentives: Provincial incentives are paid into RESPs by a designated provincial program, such as the Saskatchewan Advantage Grant for Education Savings (SAGES), the British Columbia Training and Education Savings Grant (BCTESG) and the Quebec Education Savings Incentive (QESI). Separate accounts are required for each province.
Accounts used for subscriber's property
All contributions remain the property of the subscriber. While the subscriber can give contributions to a beneficiary to pay for PSE, they are not included in EAPs.
Assisted contributions: An assisted contribution is an amount of money deposited into an RESP by a subscriber that attracts a CESG payment for a beneficiary.
Unassisted contributions: An unassisted contribution is an amount of money deposited into an RESP by a subscriber that does not attract a CESG payment for a beneficiary.