Determining the QESI Amount

Basic amount

Each year, an registered education savings plan (RESP) account can receive an amount equal to 10% of the net contributions paid into it over the course of a year, up to a maximum of $250.

In addition, as of 2008, any benefits accrued during previous years can be added to the basic amount, up to a maximum of $250.

Here is a sample calculation of the credit to which accrued benefits are added:

In 2007, Ms. Stone opens an RESP account for Matthew, her grandson, to save money for his education. She does not make any contributions in 2007 or in 2008. In 2009, however, she contributes $5,000, which gives entitlement to the basic amount of $250. In 2010, Revenu Québec will pay $500 into the RESP, taking into consideration its accrued benefits.

Increase in the amount

To help low-income families, an increase of up to $50 per year, calculated on the basis of family income, may be added to the basic amount.

Here is a sample calculation of the credit to which the increase is added:

In 2007, Mr. Hogan opens an RESP account for his young son John, and deposits $1,000. In 2008, Revenu Québec will pay $100 to the RESP, which corresponds to 10% of the contributions made by Mr. Hogan in 2007. In addition, as John's parents earn an annual family income of $30,000, the amount of $100 will be increased by $50. Therefore, a tax credit of $150 will be paid into John's RESP in 2008.

Under the Québec education savings incentive (QESI), a single beneficiary cannot be granted more than $3,600 for all of the RESPs of which the child is beneficiary.